- Program Assists Young Growers
- By Greg Brown
Associate Editor
- All Todd and Julie Stuart wanted was a chance to farm full time.
Bob and Gudrin Warrick gave them that chance by participating in a Farm Link program that joins young farmers to older growers who are interested in retiring.
Five years later, the Stuarts are both full-time on the farm, and have managed to buy a small operation nearby. They have not bought the Warrick family farm, but they continue to work with the Warricks.
Stuart says that Bob Warrick gave him a chance, and that chance has made all of the difference.
“I’m not saying we wouldn’t be doing any farming, but we wouldn’t be farming like we are today without this,” said Stuart. “I tell everyone that the biggest thing he gave me was a chance.”
Based on statistics, young farmers may need more help than they used to. The number of farmers is dropping and the average age of growers is increasing, according to statistics.
For example, between 1987 and 1997 the percentage of California farmers over 70 increased from 13% to almost 20%. By comparison, the state’s population over 70 increased from just 7% to 8% during the same time, according to the National Agriculture Statistics Service.
On the whole, the United States has seen the trend toward fewer young people choosing farming as an occupation. From 1987 to 1997 the number of farmers in the 25-34 age group dropped from 242,688 to 128,455.
In 1997, about 19% of U.S. farm operators described themselves as retired. The percent of U.S. farmers who consider farming their principal occupation decreased from 54.5% to 50.3% between 1992 and 1997.
Chuck Hassebrook, executive director of the Center for Rural Affairs, based in Walthill, Neb., said their Farm Link program has started discussions between at least 120-150 farmers. Of those approximately 75 have met with success like the Stuarts and the Warricks.
The Center’s Land Link program serves to increase opportunities for beginning farmers while encouraging good stewardship. The linking procedure starts by obtaining a questionnaire from interested parties.
Prior to linking up with the Warricks, Stuart says he never would have been able to buy the $250,000 parcel that they recently purchased.
The agreement has given his farming operation cash flow that he never would have had. Without this, he never would have been able to put a standard 30% down on small parcel of land while working for an hourly wage.
Today, they are expanding their livestock operation in new directions. They offer organic products, natural pork, as wall as fattened lambs and feeder cattle.
The operation in Meadow Grove, Neb., near Norfolk, is also heading in new directions with organic soybeans, popcorn and food grade yellow corn.
There are other non-traditional bright spots for the young growers.
Jim Rubingh, with the Colorado Department of Agriculture has had an opportunity to help a few of the young people interested in getting into agriculture. Rubingh offers resources for young growers who want to make the jump from farm worker to farm owner.
Rubingh heads the Colorado Agricultural Development Authority (CADA). CADA has helped many individuals become farmers by issuing 250 loans since its inception in 1989.
CADA’s Beginning Farmer program helps provide low-interest loans through public financing of debt and that brings younger farmers into the field. “This program helps people who want to become farmers and ranchers in Colorado,” said Jim Rubingh, director of markets for the Colorado Department of Agriculture. “We help them obtain tax-exempt bonds, so they can get started in the industry. With such high start-up costs, this program is usually their only avenue of assistance.”
Those high start-up costs are one of the key barriers to entry for many young farmers, according to David Wirth with the Illinois Farm Development, and president of the National Council of State Agricultural Finance Programs (NCOSAFP).
Wirth said that Colorado’s efforts are indicative of the many states that are part of NCOSAFP. The organization provides national representation for states that operate finance programs for farmers, ranchers and the agricultural industry.
Organized in November 1984, the non-profit organization provides a forum for sharing ideas and serves as an information clearinghouse for its member state agencies and the general public they serve.
Where else are the budding young farmers finding support? With traditional farm organizations, like the Farm Bureau.
Matt Smego of the Michigan Farm Bureau said that many states have active young farmer groups. Michigan’s Young Farmer’s board meets quarterly to decide on programming for the year.
The group’s activities are targeted to men and women who are ages 18-35 who are regular members of the organization The members take part in leadership development programs, as well as training in maintaining and enhancing farm profitability.
“We have a large number of young farmers who enter into production agriculture without any roots in agriculture,” said Smego. “We also have a large contingent of younger members who have long-established roots in agriculture.
Smego said that Michigan does have a member program affiliated with the national Farm Link program designed to link retiring growers with interested young farmers. The Michigan program is less successful than elsewhere. Since its establishment in 1989 the program has aided one successful transition and fielded 30 young grower applications and 12 retiring grower applications.
But programs like the one in Colorado, that can save some young growers 2-3% on financing a farm, have garnered great interest.
In 2002, 25 loans have been issued in Colorado alone for a total of $3.5 million. The program’s goal is to encourage the investment of private capital in the agricultural sector through the use of public financing, which makes low-interest loans available to agricultural producers.
To qualify for the Beginning Farmer Program, an individual cannot own land that is more than 30% of the median county farm size where they reside or own land valued in excess of $125,000. Funds can be used to finance agricultural land, make improvements to farming or ranching buildings and purchase farm machinery.
“What we do doesn’t cost any money in theory, because all we are doing is providing a tax credit for a lender that lowers the interest rate for the borrower,” said Rubingh. “It is also possible to use these programs to buy land from your dad or from another seller.
“Ag changes from generation to generation,” said Rubingh. “Today the older generation often needs to sell the farm in order to retire - we provide a win-win way for everyone involved.”
