By Lydia DePillis | May 30, 2024 Updated 11:20 a.m. ET The New York Times
The Biden administration aims to better support small farmers while still aiding big operations and rewarding climate-friendly practices. It’s a tall order.
Agriculture Secretary Tom Vilsack has a line about the state of small-scale agriculture in America these days.
It’s drawn from the National Agricultural Statistics Service, which shows that as the average size of farms has risen, the nation had lost 544,000 of them since 1981.
“That’s every farm today that exists in North Dakota and South Dakota, added to those in Wisconsin and Minnesota, added to those in Nebraska and Colorado, added to those in Oklahoma and Missouri,” Mr. Vilsack told a conference in Washington this spring. “Are we as a country OK with it?”
Even though the United States continues to produce more food on fewer acres, Mr. Vilsack worries that the loss of small farmers has weakened rural economies, and he wants to stop the bleeding. Unlike his last turn in the same job, under former President Barack Obama, this time his department is able to spend billions of dollars in subsidies and incentives passed under three major laws since 2021 — including the biggest investment in conservation programs in U.S. history.
The plan in a nutshell: Multiply and improve revenue streams to bolster farm balance sheets. Rather than just selling crops and livestock, farms of the future could also sell carbon credits, waste products and renewable energy.
“Instead of the farm getting one check, they potentially could get four checks,” Mr. Vilsack said in an interview. He is also helping schools, hospitals and other institutions to buy food grown locally, and investors to build meatpacking plants and other processing facilities to free farmers from powerful middlemen.
But it’s far from clear whether new policies and a cash infusion will be enough to counteract the forces that have pushed farmers off the land for decades — especially since much of the money is aimed at reducing carbon emissions, and so will also go toward large farming operations because they are the biggest polluters.
The number of farms has been declining since the 1930s, in large part because of migration from rural areas to cities and greater mechanization of agriculture, which allowed operators to cultivate larger tracts with fewer people. Over time, the federal government abandoned a policy of managing production to support prices, prompting growers to become more export-oriented while local distribution networks atrophied.
The last half-decade has been more disruptive than most. First came a trade war against China under former President Donald J. Trump, which drew retaliatory tariffs that cut into U.S. exports of farm products like soybeans and pork. Then came the pandemic, which scrambled supply chains and sapped farm labor, leaving crops to rot in the fields.
American Farms Are Disappearing
As agriculture consolidates, fewer operations grow more crops.
After Congress cushioned the blow with relief for farmers hurt by pandemic disruptions, things started to turn around. Even as the cost of supplies like fertilizer and seed rose, so did food prices, and farm incomes increased. In 2023, default rates on farm loans neared record lows.
“Farm balance sheets are the healthiest they’ve ever been in the aggregate,” said Brad Nordholm, the chief executive of Farmer Mac, a large secondary market for agricultural credit. “The tools available to American farmers to have a more predictable return, even when commodity prices change and input prices change, is greater than it’s ever been before.”
But wholesale crop prices are expected to decline over the coming year. Rising interest rates have made it more difficult to finance planting and harvesting, borrow for an expansion or just get into agriculture — especially since land values jumped 29 percent from 2020 to 2023.
That’s especially true for the smallest farmers, who are far less likely to be tapped into Department of Agriculture assistance programs and are more vulnerable to adverse weather, labor shortages and consumer whims. (Visit The New York Times for the original article)
Comments