Farmers age

[ASRG]

I was reading on an American website that about 2% of Americans are involved in primary agriculture. Of that 2%, less than 6% were under 35 years of age, and apparently that trend is increasing! Those are pretty sad numbers?
Many reasons were given for this trend including falling incomes, long work hours, and not much of a future.
The recent Alberta government, Evan Berger patronage appointment as "senior ag advisor", mentions that part of his job description is to encourage more young people to consider agriculture as a career.
Do you think Evan will be able to turn this around? I think if he can do this he will be worthy of his salary?

[ALLFARMER]

The AB Gov isn't serious about this issue. They
just need someone/something to point to and say
we tried.

Why were all the rural district agriculturalists cut
and offices closed?

The Feds are no better FCC has a dozen loans
for young people ....and you'll get one if your mom
and dad are cosigners.

[Horse]

How does a young person get a chance to try farming? Land costs are to high and they cant rent because some of the greedys want it all. A modest line of equipt will cost 250K or more and you had better be a fair mechanic welder agronomist accountant and so on. What will the bank say to a young man asking to borrow say 1 mill to go stick it in the ground with not any kind of guarante.
The only way is if dad or grand dad have the resources to start them but by the time they step aside the young man is no longer young.
There are a few oil workers in the big money that play at farming and some are sucesful but is that where we want to look for food security is someones play thing , what happens when they tire of thier toys.
I realy dont see Evan Berger as any white knight.
Mabey the gov should free up some of this crown land that the old boys have give some new blood to the younger people, they have had enough welfare now.

[per]

Well horse it is up to us to solve the succession issue. I know of a few unrelated young folks who the community is helping out in various ways to mentor them along. Land rented at a discount, equipment lending, advise and physical help by several outfits because it is what we need to do to get these kids going. If every community stepped up there wouldn't be a succession issue. The government will never solve these things, it is our role.

[grassfarmer]

Was it ever all that easy for a newcomer from
outside to start into this industry? There will always
be ways for the best and brightest to get a start
although it may not look like what most of the
established businesses look like.
I know one young man that has started on rented
land, he purchases organic yearlings to fatten on
grass and direct markets the beef in 10lb packages.
His operating capital is lent to him by his consumer
customers through a CSA type set-up so no bank
borrowing. He owns zero machinery - a pushbike is
his conveyance apart from public transport. He can
hire trucking or anything else like that when he
needs it. He doesn't winter a cattle herd so needs
no winter feed. I believe his margin is in the region
of $1000 an animal.

[ASRG]

It's good to hear some young people are trying....good for them.
I think though that numbers don't lie?
6% under 35 means a continued decline in farm families and independent farms.

How do farmers remain relevant when the population becomes so small?

Our hog producers have basically disappeared, and cow/calf producers are fast slipping. Dairy and poultry numbers are basically limited.

Huge grain farms seem to be the new norm.

Maybe the new agriculture will be Hutterite colonies and corporate farms like One Earth? Or perhaps Chines coolies who will work long hours for very little?

[riders2010]

Good topic ASRG.

So do you guys really actually care about the farming industry beyond your own front door? because that is what it would take to change this beyond desturbing trend.

[ASRG]

riders: I think we all have to take care of our families and their interests? How would you feel if your parents donated all their money to someone else?.....I'm not saying that isn't their right to do so.....I guess I would say we all have to have our priorities?
One way or the other land will get used, whether for farming, or recreation, or industrial or residential?
Is farming and agricultural use the best use? The fact is if it was then society wouldn't have a problem paying for it? If they'd rather build a house or a parking lot, and will pay for it, then that is what it should be used for.
It might not be right, but that's just how it is. Agriculture in Canada just isn't very important....at this time!
So if my land is worth $4k/acre should I sell it to some young guy for $2K? So he can sell it five years down the road for $6K?

[ALLFARMER]

Very good posts Horse and others. I think this
points to big corporate farms are going to be the
future. Maybe no different than owning an oil
company. You buy shares and have managers.
Oil companies hire nearly all their work
done....Precision to drill your hole geologist
different outfit and so on. Many of today's big
farmers today rent 80% or more of their land
base. That's a new trend, a big reason grain
baggers are so popular. Guess since I am over
35 I am one of the old boys now lol

[kato]

In the studies, I wonder what they consider as "young people involved in agriculture"? Since I've gotten involved in farmer's markets, I've met a lot of young people who are getting into agriculture, but their vision of agriculture doesn't look like what the corporate only eyes of the establishment seem to be able to see.

These young people are more like the young fellow grassfarmer describes. They're young, they're passionate about what they are doing, they're not deep in debt, and they seem to be making it work.

IMHO, I think this is the other future of agriculture. The one that the middlemen can't seem to make a buck off of, so therefore it's dismissed as being non-existent. The thing is that it does exist, and it's growing.

As long as there is no money to be made off of these type of operators, I don't think we'll see it being acknowledged by the industry. Industry doesn't like to be left out of the income stream. They want their piece of the pie, and this smaller local direct with the public dealing way of farming does not allow them to have it.

IMHO, over the next few years, in the wide open rural areas, we'll see big farms getting bigger, and in areas within trading distance of reasonable sized urban centers, we'll see smaller ones continue to develop. And thrive.

[Horse]

Small ones develop and thrive? I know a few that work 16 hr per day and manage to sell enough to survive but they are wearing themselves out with nothing to show for it , they would do better working fot Mac Donald or walmart but they are idealistic.
I have always kept my bills paid mostly by long hrs and being able to fix and run on a small budget, I can save money but I cant make anyif you know what I mean like I can buy a 30Cent hog and butcher it myself or a beef and not pay 70 cent cuting and wraping but I didnt make any money so I have to look else where to pay taxes buy gas give the kids a bit of spending money and grow a garden but who realy wants to live the sinple life? Yea academics retred profesionals that have all the money they will ever need so if they decide to grow a tomato and call that agriculture it dosent matter because they can.

[grassfarmer]

Do you think $40k profit for pasturing 40 grass cattle
for 5 months a year then selling and delivering the
beef over the winter is a poor return on your labor
and time invested? I think that's got to be pretty good
by anyones standards in modern agriculture -
considering there is no debt and no machinery to buy
or operate. I bet it compares favourably to most
operators in the beef sector - looking more like a part
time work commitment but making more than many
several hundred head outfits do.

[kato]

The ones I know seem to be doing well... As well as a lot of bigger operations are, if those were to really look at their returns.

Being bigger doesn't guarantee you'll bring home more money. And it sure doesn't guarantee that you won't work hard for nothing either.

Short of inheriting or marrying a farm, going the small farm low debt way is likely the only way someone could start in the business nowadays.

Unless of course you're living in the oil patch and want to play cowboy on the weekend. ;-)

[smcgrath76]

This is really a discussion about business strategies and polar opposites. Large farms often get
larger due to producing in a capital intensive, low margin business. eg: If I make $10 per acre,
then how many acres do I need to make a living.
The new paradigm from these young folks is based on growing margin rather than scale. As in how can
I make the most $ per acre/per animal?
The skill set is very different, the marketing is different, and I expect in the next 10-20 years you
will see some of these young folks grow their operations. Not for economies of scale, but because of
high margins being a signal for expansion.
We operate a cattle operation with pretty healthy margins, but I know the margins on our grass-
finished product far outweigh that of our commodity steers and even our F1 heifer sales. I also know
the skill set required is vastly different. It will likely become a more significant portion of our
business as we move forward.
I think that neither is right or wrong, but they certainly are different. Personally I find the
second approach more appealing and I think we will see some of this new crop working together to
achieve scale, rather than buying out their neighbours. This new, young crew is also tech savvy and
can often work from home in highly skilled jobs, as well as being low cost-high impact marketing
savvy. The new onfarm, offfarm employment program to fill their spare time. These new folks
certainly value their time highly and are looking for creative, time saving approaches as well.

[kato]

Which takes me back to the question.. are these new young farmers being included in the results of these studies? Or are they being left out because they're outside the box, as the saying goes?

Maybe agriculture isn't in quite as bad a shape regarding new upcoming operators, as much as it's in transition.