beginning farmers

USDA programs have targeted assistance to beginning farmers and ranchers since the 1992 Agricultural Credit Improvement Act. Farms or ranches are considered “beginning” if the operators have managed them for 10 years or less. The Economic Research Service has looked at the trend in numbers of beginning farmers and ranchers in recent decades and examined some key characteristics that distinguish them from established farms using the Census of Agriculture and the Agricultural Resource Management Survey. Taken every five years, the Census provides the only source of uniform, comprehensive and impartial agricultural data for every county in the nation.

For more than two decades, the share of farms operated by beginning farmers has been in decline.  Beginning farms and ranches accounted for 22 percent of the nation’s 2 million family farms and ranches in 2011 – down from about 38 percent in 1982. Consistent with this trend, the average age of principal farm operators in the United States has risen in that period, from 50 to 58.

Every year, Dustin Schlinsog walks into the Farm Service Agency office in Neillsville, Wis., to apply for a direct operating loan to support his greenhouse operation. It’s a small loan, under $35,000. Yet, he must complete 17 pages of paperwork and meet the same requirements for farm operations applying for loans of $300,000.

Not anymore.

Agriculture Secretary Tom Vilsack announced last week the start of a new microloan program to assist beginning farmers, veterans and smaller farm operations. The program is designed to provide loans under $35,000 to help launch start-ups, provide needed resources and increased equity so farmers can graduate to commercial credit and expand their operations.

Urban agriculture and gardening can be an important tool in confronting several key challenges that Americans face: from supporting farm viability in and around urban areas to improving access to healthful, affordable food to realizing the potential of rural-urban linkages.

When Denise Hamilton and her husband retire from their careers as teachers at West Jessamine County High School in Nicholasville, Kentucky, they plan to move to their new farm in Garrard County and supplement their retirement income by growing pasture-raised beef and organic vegetables.

“We just want to get back to the land, because that’s just who we are,” Hamilton said. “Back to who we are and also feel good about what we’re doing.”

The Hamiltons quickly realized they faced many challenges as beginning farmers. New farmers face unique challenges, including the rising cost of farmland and a lack of knowledge about how to get farmland, implement sustainable farming practices, and access operating capital to get started.

The Farm Credit Council, the trade organization for the farmer-owned Farm Credit System, was recently awarded a grant by the Risk Management Agency to produce written and web-based material using case studies to explain how local food systems work in the real world of business and economics, called the “Field Guide to the New American Foodshed.”  With this field guide, beginning farmers, ranchers and entrepreneurs will be able to identify different food system business models as they come across them, along with detailed explanations of their business structures and related resources.

Most farm business advisors that are readily available are often very familiar with traditional commodity agriculture.  But many beginning farmers and ranchers (BFRs) are serving markets that are often found outside of national and international commodity markets.  In addition, many BFR operations are often located near metropolitan areas where there are fewer financial service providers familiar with the workings of an agricultural operation.