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Independence Rapidly Fades From Farming
Farming is one of the most
challenging occupations that exist today. One has very little control
over market prices, government policies, trade wars, and the weather (we
know not to plant in the winter and that is about it when it comes to controlling
the weather). Despite all the gloom and doom, there are many that
profess that they would love to farm if it were possible.
Despite the immense challenges
of farming, those who toil the soil list many reasons for pursuing this
occupation. Growing up on Brown County farms in the 1950’s and 60’s,
I soon learned that one of the first reasons people gave was independence
to be their own boss and decision maker. Over the past five decades
one could have virtually been a hermit and farmed.
True independence for farmers
was born with the invention of the combine. Before the combine,
farmers were dependent on their neighbors to get their crops harvested.
Neighborhood threshing teams of 10 to 12 farmers purchased one machine
and went farm to farm until all farms in the group were harvested.
The combine allowed everyone to become independent.
Independence on farms flourished
until the 1990’s. Buzz words like contract farming came into being.
With new technology like no till drills being too expensive for a small
farmer, friends went together to purchase and share a piece of equipment.
Livestock production began to consolidate into larger units. Hog
farmers merged to specialize in production with some farrowing while others
finished. We lost all our local auction yards: Springfield then Urbana,
Washington Courthouse, Wilmington, and now IBP at Lumberton. Small
producers are now teaming with neighbors so they can send semi’s of hogs
hundreds of miles to a packing plant. The broiler industry is almost
exclusively contract farming. Contract farming in hogs is rapidly
gaining in popularity to reduce risk in the market place. Beef Alliances
are being formed to share premiums for quality beef from farm to supermarket.
Producers wishing to remain
independent have sought refuge in crop farming; but that is rapidly changing.
With little or no profit in generic corn, wheat and soybeans, farmers are
finding additional profits by sacrificing their independence. Contract
farming in grain crops is now reality. By allowing a company to tell
you what variety to plant, when to deliver, and how long to store, producers
can gain a premium over generic crops. Some farmers have banded together
to buy inputs. By giving up some independence a producer can purchase
inputs cheaper by being part of a larger group with volume discounts.
With generic soybeans at
$4.45 and corn at $1.75, farmers are realizing that marketing niches need
to be found worldwide. Farmers in Illinois are selling direct into
Japan and China. Crawford County farmers are banding together to
capture a market for value added crops to gain significant premiums.
While most Americans wait
for July 4th for Independence Day, the American Farmer’s independence may
evaporate in the new millennium. With merger mania in agriculture,
I do not see a future for farmer independence. It’s a sad reality.
I hope I’m wrong.
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All educational programs
conducted by Ohio State University Extension are available to clientele
on a nondiscriminatory basis without regard to race, color, creed, religion,
sexual orientation, national origin,gender, age, disability or Vietnam-era
veteran status.
Keith L. Smith, Associate
Vice President for Ag. Admin. and Director, OSU Extension
TDD No. 800-589-8292 (Ohio
only) or 614-292-1868
Updated: February 2000
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