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Farm Structure: Research Developments


Research Developments - 2002

Research Developments - 2001
Research Developments - 2000


2002

ERS Economists Brief Congressional Hunger Center: On December 12, Jim MacDonald and Doris Newton (ERS) provided a briefing on the industrial organization of U.S. agriculture to Fellows of the Congressional Hunger Center (CHC). The CHC is a bi-partisan nonprofit organization started by Representatives Tony Hall, Frank Wolf, and Bill Emerson. The organization's Mickey Leland International Hunger Fellows program trains 12-15 young leaders in a two-year cycle. The Fellows spend their first year working abroad in a variety of food-insecure countries while based with multi- and bi-lateral aid agencies as well as international and national NGO's, and spend their second year in Washington working on policy, education, and advocacy initiatives. MacDonald and Newton spoke with them about the changing structure of agriculture and related agribusinesses.

ERS Economist Participates In Farmers' Market 10th Annual Conference: On October 17, Doris Newton (ERS) participated in the 10th Annual National Association of Farmers' Market Nutritional Programs conference. Newton was one of several panelists in the breakout session, "USDA Small Farm Coordinators: Opportunities and Resources for Small Farmers." Newton highlighted ERS small farms research activities and provided handouts for participants.

ERS Economist Presents Research Findings at University of California: On September 20, Michael Roberts (ERS) gave an invited presentation at the University of California at Berkeley. The paper presented, co-authored with Nigel Key (ERS), was entitled "Risk and Structural Change in U.S. Agriculture: How Income Shocks Influence Farm Size."

ERS Presents Small-Scale African-American Farmer Interviews at Third National Small Farm Conference: On September 18-19, Anne Effland (ERS) presented findings from interviews with small-scale African-American farmers in the Mississippi Delta at the Third National Small Farm Conference in Albuquerque, New Mexico. The interviews focused on farmers' strategies for success, their assessments of barriers to success, and their ideas about how USDA and the land grant university system could help them address those barriers. The interviews were carried out in collaboration with Dr. Valerie Grim, Associate Professor of Afro-American Studies, Indiana University. Doris Newton (ERS) also gave the presentation "Typology of America's Small Farms," as part of a plenary session on "Description, Statistics, and Typology of America's Small Farms." The National Small Farm Conference provides a forum for agriculture professionals, community-based organizations, and small-scale farmers and ranchers to discuss concerns and share strategies for success in keeping small farms economically viable. The conference was hosted by the College of Agriculture and Home Economics, New Mexico State University, with the support of the CSREES Small Farm Program.

ERS Economists Participate in Conference on Economics of Contracts in Agriculture: On July 21-23, ERS economists participated in a conference on the Economics of Contracts in Agriculture, sponsored by the University of Maryland and the Royal Agricultural and Veterinary University of Copenhagen. Mary Ahearn, Jet Yee, Nigel Key, and Michael Roberts (ERS) presented papers at the conference, held in Annapolis, MD.

ERS Economists Assists Maryland Department of Agriculture: On June 25, Pat MacMillan of the Maryland Department of Agriculture, contacted Bob Hoppe (ERS) for ideas on developing a classification system for Maryland farms similar to the ERS farm typology. Hoppe and MacMillan developed some ideas for a classification scheme after looking at the detailed tables published in the Census of Agriculture. MacMillan will contact the Maryland NASS State Office to have some special tabulations from the Census prepared. The Census will provide reliable information at both the State and county level.

ERS Administrator Discussant At Agricultural Structure Seminar: On March 13, ERS Administrator Susan Offutt served as a discussant for the USDA Economists Group Seminar Series presentation, "Implications of Structural Change on Agriculture," at the USDA Whitten Building. Presenters and participants discussed the implications and impacts of current and proposed changes in Federal and State programs on the structural, industrial and social structure of U.S. agriculture. Dwight Gadsby and Ken Krupa (ERS) attended the seminar as current Board members of the USDA Economist Group. The seminar was well-attended by economists and others from ERS and other USDA agencies.

ERS Economists Meet with Japanese Ag Ministry Visitors: On March 13, Bob Green and Bob Hoppe (ERS) met with Junichi Kanzaki, Yukito Konno, and Kurosawa Shoichi, three visitors from the Statistics and Information Department, Japanese Ministry of Agriculture, Forestry, and Fisheries. The visitors were interested in how ERS defines off-farm income and how ERS developed its farm typology and resource regions. The Ministry is planning to change its current regional and farm classifications and was looking for ideas from other nations. As in the United States, many farmers in Japan work off-farm and operate small farms, so measuring off-farm income is important.

ERS Economist Addresses Ag Policy Class: On March 7, Bob Hoppe (ERS) described the development and use of the ERS farm typology to a group of ag policy students from the University of Kentucky (UK). Jerry Skees, of the Agricultural Economics Department at UK, has brought his policy students to Washington DC for the past 13 years. The purpose of the trip is to help the students understand how farm policy is made, influencing the career choices of many past students. Agencies represented this year (in addition to ERS)include the House Agriculture Committee, the Senate Agriculture Committee, FAS, GIPSA, FSA, the Office of the Chief Economist, and NASS.

ERS Economist Helps NRCS Define Farm Client Groups: On February 27, Bob Hoppe (ERS) attended a meeting called by Larry Holmes (NCRS) to discuss the definitions of limited-resource, beginning, and socially disadvantaged farmers. NRCS is rethinking its definitions of these potential client groups and wanted to learn about other agencies' definitions and their experiences in applying the definitions to program administration. Agencies represented were ERS, NASS, CSREES, RMA, FNS, FSA, and NRCS.

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2001

Small Farms Research Activities Briefing: All Departmental Small Farm Coordinators (SFC) and/or agency representatives were invited to participate in a briefing on small farm activities presented to visiting officials from the Japanese government. The briefing was held on Monday, September 10 at 10:00 am. Dr. Dennis Egodaghe, Small Farms Coordinator, REE mission area, organized the briefing. Doris Newton provided highlights of agency small farm research from the report, " America's Diverse Family Farms." She distributed copies of this report and other ERS publication/communications materials.

ERS research on small farms published: Robert A. Hoppe. "Farm Households Are Often Dual-Career," Rural America, USDA, Economic Research Service, Vol. 16, Issue 2., Summer 2001, pp. 41-51. As with nonfarm households, many farm households pursue more than one career. Decisions about how to allocate labor, management skills, and other resources between farm and nonfarm employment affect the level and sources of income for farm households. Even households with very large farms are often dual-career. About two-fifths of households operating very large farms are dual-career with a spouse working off the farm and an operator farming, largely without off-farm work.

ERS Economist Assists Maryland Department of Agriculture: On November 1, Pat McMillan, Maryland Department of Agriculture, contacted Bob Hoppe (ERS) seeking more detailed information on farms receiving government payments. Hoppe referred McMillan to Structural and Financial Characteristics of U.S. Farms: 2001 Family Farm Report. Mr. McMillan felt that media coverage of government payments was misleading and wanted background information on receipt of government payments by farms of different sizes and types. He also wanted information on the ARMS survey and how it differed from agency administrative records.

Inquiry from Senate Agriculture Committee about Characteristics of Large Agricultural Processors: On October 30, Steve Crutchfield (ERS) received a call from Erin Peterson, who is with the Senate Agriculture Committee. She requested information about the firm characteristics of large agricultural processors (those with annual gross sales over $10 million), including livestock, hogs, corn, and soybeans. James MacDonald provided her with information drawn from the Census of Manufactures.

ERS Economists Present Urbanization Findings To Small Farms Working Group: On October 25, Ralph Heimlich and Robert Hoppe (ERS) presented findings from the recent ERS report, Development at the Urban Fringe and Beyond: Impacts on Agriculture and Rural Land, to members of the USDA Small Farms Working Group. The presentation focused on results from a longitudinal study of entry, exit, and change in metro farms between 1978 and 1997.

ERS Helps Extension Define Middle-Sized Farms: On October 22, Bob Hoppe (ERS) received a call from Denis Ebodaghe, National Program Leader, Small Farms, USDA-CSREES. Mr. Ebodaghe was trying to find a definition of "middle-sized farms" to use in the Initiative on Future Agriculture and Food System. During the discussion, Mr. Ebodaghe decided to use the definition of "large family farms" (sales between $250,000 and $499,999) from the ERS typology.

ERS Farm Typology Being Adapted for Program Use: On October 16, Frank Clearfield, Director of the NRCS Social Science Institute at North Carolina A&T University, contacted Ralph Heimlich (ERS) for additional information and guidance on using the ERS Farm Typology to assess demand for NRCS's conservation programs for limited-resource and other farm types. The typology, featured in the Secretary's food and agricultural policy report, was developed by ERS to better understand the motivations and resources available for farms of different sizes than a strict sales breakout. Clearfield was referred to James Johnson, Chief of the Farm Structure, Performance and Welfare Branch that developed the typology, for more information.

ERS Economist Briefs Small Farms Coordinators: On October 16, Robert Hoppe (ERS) presented a briefing on the ERS Farm Typology at a meeting of the USDA Small Farm Coordinators. Hoppe's presentation, "America's Diverse Small Farms," was based on an earlier paper presented at the American Agricultural Economics Association in Chicago.

ERS Economists Present Research on Small Farms at the Agricultural Economics Association annual meeting. Rich Nehring of ERS organized a symposium "Urbanization and Agriculture: Measuring Urban Influence and its Impacts on Farmland Values and Costs of Production." These papers assessed agricultural issues arising from the growing influence of nonfarm activities on production agriculture—the real extent of urban influence, its effect on the competitive position and survival of farms in the rural-urban fringe, and its effect on the measurement of agricultural productivity. Two ERS papers were presented.

  • "The Fate of Farm Operations Facing Development" by Bob Hoppe and Penni Korb (presented by Korb).
  • "Does Urban Influence Increase Costs of Production in the Corn Belt?: A Frontier Approach" by Rich Nehring, Charlie Barnard, Dave Banker, Vince Breneman, and Agapi Somwaru (presented by Nehring).
  • "Characteristics of Small and Limited-Resource Farms," by Bob Hoppe (prepared with Jim Johnson), presented at the symposium "Meeting the Educational Needs of Small and Limited-Resource Farmers."

ERS research on contracting presented at Agricultural Economics Association annual meeting:

  • "Does Contracting Raise Farm Productivity? The Impact of Production Contracts on Hog Farm Performance," by Nigel Key and William McBride.
  • "Factors Affecting Contractor and Grower Success with Hog Contracting," by Nigel Key and William McBride.

ERS research presented at Agricultural Economics Association annual meeting: "Productivity Growth, Technological Progress, and Technical Efficiency: 1996-1999," by Richard Nehring, Catherine Morrison, David Banker, Vince Breneman, and Agapi Somwaru. Senate Inquiry on the 2001 Family Farm Report: On July 13, Robert Green (ERS) received a call from Larry Burmeister, on the staff of Senator Kent Conrad, ND, regarding the government payment section of Structural and Financial Characteristics of U.S. Farms-2001 Family Farm Report. Burmeister wanted to know why ERS compares the level of government payments to gross cash farm income, rather than net farm cash income.

ERS Research Discussed on Radio Broadcast: Newton, Doris J., "Interdependence of Farms and Rural Towns," Successful Farming Radio Magazine broadcast (Track 4). North Shore Productions, Detroit Lakes, MN, July 26, 2001, This radio discussion with producer and host, Darrell Anderson, references work from the Rural America article, "Financial Well-Being of Small Farm Households Depends on the Health of Rural Economies." Omaha World Herald: On July 6 and June 28, Penny Korb (ERS) was contacted by Bill Hoard of the Omaha World Herald who is doing a piece on women in agriculture. Hoard was directed to the 2001 Family Farm Report located on the ERS web site, which has a chapter on women farmers. The World Herald piece was published in the Sunday, July 8 issue.

Sprawl Report Released: In June 2001, ERS released Development at the Urban Fringe and Beyond: Impacts on Agriculture and Rural Land , by Ralph Heimlich and Andy Anderson. R.A. Hoppe and P. Korb contributed to the section on metropolitan agriculture and transitions between metro farm types.

Newton/Hoppe Meet With CSREES-ECS Fellow To Discuss Small Farms Research: On June 29, Doris J. Newton and Robert Hoppe (RED) visited with Dr. Stephen Tubene, CSREES-ECS Fellow, to discuss small farms research. Dr. Tubene is a farm management specialist and Coordinator of the Small Farm Institute, University of Maryland (UMES).

Choices publishes article: Choices published . "A New Typology For a Diverse Ag Sector," in its 1st Quarter, 2001 issue. The article was written by Bob Hoppe, Jim Johnson, Janet Perry, and David Banker and appeared in the "Graphically Speaking" section of the magazine. The article describes U.S. farm structure using the ERS farm typology. Sales class alone is inadequate to classify farms.

Office of Representative Rosa DeLauro Requests Rural America Article: On June 22, Doris J. Newton (RED) was contacted by a staff member from the office of Representative Rosa DeLauro(D-CT) to request a copy of the Newton/Hoppe Rural America article, "Financial Well-Being of Small Farm Households Depends on the Health of Rural Economies."

Successful Farming Radio Magazine Request for Farm Income Information: On June 21, Doris Newton (ERS) was contacted by Darrell Anderson of North Shore Productions, "The Successful Farming Radio Magazine." Mr. Anderson developed a feature for the summer radio broadcast. Newton provided highlights from the Newton/Hoppe article "Financial Well-Being of Small Farm Households Depends on the Health of Rural Economies," from the May 2001 Rural America report.

ERS releases Family Farm Report: At the end of May, ERS released . Structural and Financial Characteristics of U.S. Farms: 2001 Family Farm Report , edited by Bob Hoppe. Family farms vary widely in size and other characteristics, ranging from very small retirement and residential farms to establishments with sales in the millions of dollars. The farm typology developed by the Economic Research Service (ERS) categorizes farms into groups based primarily on occupation of the operator and sales class of the farm. The typology groups are reflective of operators? expectations from farming, position in the life cycle, and dependence on agriculture. The groups differ in their importance to the farm sector, product specialization, program participation, and dependence on farm income. These (and other) differences are discussed in this report. The Family Farm Report is summarized in a brochure, America's Diverse Family Farms: Assorted Sizes, Types, and Situation.

ERS Continues Its Seminar Series on Contracting: In 2000, ERS hosted a conference sponsored by the Farm Foundation on contracting in the agricultural sector. ERS continues this series by hosting two seminars by well-known researchers Rachael Goodhue and Marvin Heyenga. On June 8, 2001, Rachael Goodhue, University of California, Davis, presented a seminar based on the paper "Contracts, Quality, and Industrialization in Agriculture: Hypotheses and Empirical Analysis of the California Winegrape Industry." Then on July 20, 2001, Marvin Heyenga, Iowa State University, presented findings from his many years of research on contracting and the structure of agriculture, particularly in the hog industry.

ERS research on small farms published: Newton, Doris J. and Robert Hoppe "Financial Well-Being of Small Farm Households Depends on the Health of Rural Economies," Rural America. USDA, Economic Research Service, May 2001, Volume 16, Issue 1, pp. 2-11. The number of farms has decreased since the 1930s, and average size, measured in acres, has increased. Most farms are small, and more than half have sales less than $10,000. As a result, households operating small farms rely heavily on off-farm income from the local economy. At the other extreme, some farms have sales in the millions. These and other differences present challenges when analyzing the economic structure of agriculture and developing farm policy recommendations.

ERS research to be published in the American Journal of Agricultural Economics: Paul V. Preckel (Purdue University Dept of Ag Econ.), David H. Harrington, and Robert Dubman. "Primal/Dual Positive Math Programming: Illustrated Through an Evaluation of the Impacts of Market Resistance to Genetically Modified Grains." A mathematical programming procedure is illustrated through application to a sectoral equilibrium displacement model focused on evaluating the consequences of reluctance of U.S. trading partners to accept genetically modified crop products (e.g., corn and soybeans) for U.S. production patterns and net farm income.

ERS research to be published in Choices: "The Competition for Biotechnology's Future" by John L. King, Anwar Naseem, and Norbert Wilson. This paper uses event study methodology to examine competitive effects of mergers in the agricultural biotechnology industry.

ERS Economist Presents at North Central Region Small Farm Workshop: On March 21-23, Bob Hoppe (ERS) made a presentation applying the ERS farm typology to the North Central Region. The presentation provided background information for discussions on what land grant universities, extension, State departments of agriculture, and Federal agencies can do to serve small farms.

Workshop on NAFTA Policy Disputes: ERS cosponsored a workshop entitled "Structural Changes as a Source of Trade Disputes under NAFTA" on Feburary 14-17 in Tucson, Arizona. The workshop, which was the seventh in a series of workshops on agriculture and food policy information, is the product of a cooperative agreement between ERS and Texas A&M University's Agricultural and Food Policy Center. ARS, FAS, Agriculture and Agri-Food Canada, the Canadian Agri-Food Trade Research Network, Cargill, Ltd., the Farm Foundation, and the Royal Bank of Canada provided additional support. Participants in the workshop included persons from the private sector, academia, and the three NAFTA governments. The gathering also featured several papers prepared by ERS economists: a background paper on the structure of U.S. agriculture by Steven Zahniser, Robert A. Hoppe, James Johnson, and David Banker; an examination of the field crop sector by Dempcey Johnson; and an analysis of agribusiness concentration and competition by Jim MacDonald. ERS Division Director Neil Conklin moderated a closing discussion about the role of government in faciliating change and competition.

ERS Responds to Risk Management Agency Request: On January 16, Bob Hoppe (ERS) prepared a count of operator households distributed by household income classes for the Risk Managment Agency (RMA), Pacific Northwest Regional Office. The information will be used by RMA to update the Agency's definition of small or limited-resource farmers.

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2000

ERS Economist Presents Farm Structure Analysis: On October 18, Robert Hoppe (ERS) described current farm structure using the ERS farm typology to the Cornell Food and Agriculture Leadership Institute for New York Extension Educators at the Rayburn Building in Washington, DC. The purpose of the session was to help the educators understand the alternatives facing small farms. Other presenters included Richard Wetherhill of the USDA Rural Economic Assistance Program (REAP) and Fred Hoefner of the Sustainable Agriculture Coalition.

ERS Economist Presents Small Farm Research: On September 17-20, Bob Hoppe (ERS) attended the annual National Public Policy Education Conference in Albany, NY. The conference was sponsored by the National Public Policy Education Committee in Cooperation with the Farm Foundation and State Extension Services. Hoppe discussed farm structure using the ERS farm typology, and presented implications for small farms. The Commissioners of Agriculture for Vermont and New York also made presentations at the session.

ERS Economist Attends National Black Farmers Association Conference: On August 24-25, Doris Newton (ERS) attended the National Black Farmers Association 2000 Annual Conference in Richmond, VA. This conference provided information on farm management strategies and interaction with stakeholders and other professionals. As a member of an ERS project on successful small farm management strategies, Newton shared findings on information sources about marketing channels used by small farms. Feedback from the conference will be used to aid in developing survey questions for the ARMS survey and in a project report. Other workshop topics included discussions on farm marketing and diversification strategies, and new agricultural technologies.

ERS Economist Presents Research Results on Successful Small Farms: On August 2, at the American Agricultural Economics on Association meetings, Bob Hoppe participated in the organized symposium "Successful Small Farms: How Do They Do It?" His presentation, entitled "Goals, Financial Success, and Small Farms," examined farmers ranking of various goals from the 1995 Farm Costs and Returns Survey. His presentation assessed variation in the importance of goals by the farm typology, and examined differences in goals between financially successful farms and other farms in each typology group.

ERS Economist Facilitates Small Farm Working Group: On June 22, Bob Hoppe (ERS) facilitated the quarterly meeting of the USDA Small Farm Program Working Group, in Washington, DC. Topics on the agenda included USDA outreach efforts, presented by USDA-RD, a presentation by the American Farmland Trust on keeping small farms viable, and small farms in the Pacific by USDA-CSREES.

ERS Economists Meet with Japanese Agricultural Specialists: On February 23, ERS economists David Banker and David Peacock met with Yoighi Watanabe, First Secretary of the Embassy of Japan, and Hiroyuki Kamakawa, Kunihisa Yoshii, and Kiichi Narita from the Japanese Ministry of Agriculture, Forestry, and Fisheries. Peacock discussed the U.S. farm sector estimates and forecasting system, while Banker explained the ERS farm typology and the design and uses of the ARMS survey system.

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For more information, contact: Dave Banker or Bob Hoppe

Web administration: webadmin@ers.usda.gov

Updated date: June 26, 2003