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The agricultural
industry is undergoing rapid consolidation (continued) ...
The massive trend toward industrialization and the consolidation of ownership is examined by Charles C. Geisler, a professor in the Department of Rural Sociology at Cornell University, in a paper entitled, "Working Lands and Working People: Coupling Smart Growth with Smart Ownership." The paper, presented in the opening plenary session of the Keep America Growing Conference in Philadelphia on June 7, 1999, is available for download at http://www.farmland.org/kag/pdffiles/papers/002.pdf.
Geisler states:
"Numerous forces contributed to the exodus of farmers.
One was a natural aging process ... Another factor has been the price received by farmers for their products ... The old saying rings ever truer: you can make a small fortune in farming if you start with a large fortune ... With the help of formidable technologies, farmer productivity exploded by 1,300 percent between 1940 and 1989. But abundance hurts. Prices fall, farmers scramble for greater efficiencies, more land, or both. They are urged to get big or get out, and many do the latter.
"A 1997 Civil Rights Unit within USDA cited long-term bias in federal farm polices of many kinds towards minority farmers as a reason for their collapse.
A special commission report followed in 1998, entitled ‘A Time to Act.' It found widespread indifference and discrimination towards not only minority farmers, but small farms in general. Areas of significant neglect included:
"farm foreclosure polices
"underfunding of assistance programs, and
"entrenched large farm bias in:
"credit,
"price supports,
"federal tax policy,
"labor laws,
"farmworker subsidies, and
"other less obvious areas."
The paper continues, saying: "The commission characterized our remaining 2,000,000 farms by annual gross sales and concluded that 6 percent (or 123,000 farms) receive roughly 60 percent of gross receipts – the consequence of a historically uneven playing field."
Other statistics cited in the paper underscore this trend
"As a recent
USDA publication points out, roughly half of the United States
outside of Alaska is agricultural land (or 930,000,000 acres).
"The 1997 Census of Agriculture tells a [revealing] story about the
separation of ownership and control. Today, half our agricultural
land is owned by persons not farming it ... One out of two agland
owners, in other words ... are landlords and not farm operators.
Roughly two thirds are 60 years old. Many live away from the
farmland they own. In their hands, the prospects of land conversion
is more of a business calculation and estate planning endgame than
an occupational decision
"What about farm operators as opposed to farm owners? They, too, are
in transition. For the first time in the history of the Agricultural
Census, the production of our food and fiber rests in the hands of
less than a million full-time farmers. Though there were
approximately two million farmers enumerated in 1997, only half of
these listed farming as their sole occupation. In other words, one
out of two farm operators are ‘footloose' when it comes to their
farming commitment. They have diverse, nonfarm occupational and
ownership interests which, depending on tomorrow's land or commodity
markets, will precipitate further vacancies in [our increasingly
empty farmland].
"The ownership story doesn't end there. Whether or not owners are
operators and operators are committed to full-time farming, a small
fraction of the already depleted number of owners decide the future
of the agricultural landscape.
"Recall that 930 million acres of agricultural land are at stake.
"Widely dispersed farm ownership still existed in the 1970s...
"‘A Time to Act' reports an attrition of 300,000 farmers [in the 16
year period] since 1981, a decline surely reflecting the farm
crisis of the 1980s.
"By 1991 USDA researchers were reporting that the largest 4 percent
(124,000 owners) held 47 percent of all farmland and 25 percent of
all value in farms. We have, then, a situation in which a population
roughly the size of Boise, Idaho, owns nearly half the agricultural
land in the United States and controls its fate. " [Emphasis added.]
The situation has not improved. A July 17, 1998 article in
The New York Times reported that farm debt in 1998 reached $172
billion, the highest since the height of the farm crisis in 1985.
Since then, articles in the New York Times and other papers have
continued to chronicle the economic struggles and losses of land
that are devastating farmers across the nation (see Excerpt 9 - "An
American Tragedy,")
Federal estate tax laws also exacerbate this problem,
since they remove land from individuals and families and abet
consolidation by corporate and nonfarm entities. See Excerpt 17 -
"The Case for Eliminating Estate Taxes."
As a result: "Ownership units have grown in acres, assets, and
market share at the expense of their neighbors. A starkly
bimodal ownership structure is the result. The newly consolidated
unit ... typical in many parts of the U.S. today, may rest legally
in the hands of an individual, a family corporation, or an
institutional owner (insurance company, bank, corporation, religious
order, university, or estate)
"At the national level, food manufacturing concentration
[also] is nothing less than breathtaking. By the early 1980s, 56
out of 98 food manufacturing industries had four-firm concentration
levels of 40 percent or more ... Oligopoly in the national food
system has forged ahead, apparently immune to anti-trust legislation
... commodities such as beef, pork, broilers, turkeys, animal feed,
flour, corn, soybean and ethanol are exceedingly concentrated."
Consequently: "... many million farmers have been evacuated
from their lands, and ... American agriculture has been diluted
almost beyond recognition by depressed ratios of people-to-land and
by changing ownership realities for those who remain on the land.
"As the farm population has tumbled, farm operator numbers
have diminished as have the number of committed, full-time farmers.
Their working lands have been consolidated by owners who don't farm,
live elsewhere, and who have significant nonfarm interests."
"Such a structure," Geisler says: "is a poor shield against
farmland conversion and eventual sprawl."
It also puts this nation's entire farm production system at
risk.
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