By Jesse Bussard
We manage three things in ranching – grass (land), livestock and money. It’s a fairly simple model when you look at it this way.
However, if you are someone who doesn’t have one, some, or all of these three things, getting started in ranching can seem like an impossible task to achieve. If you are a beginning farmer or rancher you know exactly what I am talking about.
Access to the land and capital are the biggest obstacles USDA’s Economic Research Service (ERS) cites for beginning farmers in a report they released on January 30. The report showed that between 1982 and 2007, the number of farmers who operated farms for less than 10 years (USDA’s definition of a beginning farm) had declined with the number of young principal operators.
In addition, it was determined that the number of principal operators under the age of 35 had fallen from 16% in 1982 to an all-time low of only 5% in 2007. Another interesting fact to note is in 2011 the average age of beginning operators was 49, while established operators had an average age of 60.
While these numbers seem somewhat concerning, they also seem contradictory to the growing passion I see in so many young people for agriculture. The fact is that the numbers only tell us part of the story. They do not give us the details of what else is going on behind the scenes. Yes, access to land and capital are indeed challenges the next generation of agricultural producers face. But is this really the cause of the problem? I say, no.
February 15, 2013 at 8:48 AM
Reblogged this on Land & Livestock International, Inc. and commented:
Good article Jess. This is the first time I have ever re-blogged anything. I’m keeping my fingers crossed that I don’t mess it up.
February 15, 2013 at 9:23 PM
Thanks for reblogging and sharing, Jimmy!
February 15, 2013 at 8:05 PM
I think the main problem with access to land for young producers, is that prices on land whether it’s high mountain hay meadows, or flat country on the high plains of Kansas are never set to agricultural prices. And if they are set to agricultural prices, for example in the corn belt, it is at a price for major corporate purchasers. Those people who have an expansive amount of capital, can buy the land, dump millions of dollars of inputs to it, get a million dollars in profit and turn it around to the next buyer for a premium. In the high country where I am at, and in almost every western state, land is priced at scenic value. And I cannot buy, and probably will never be able to buy scenic value with the intent to do ag on the land.
The other problem is, is that ranch kids don’t inherit the ranch because their dad did it the hard way and they think they have to do it the hard way to. I don’t have a ranch to inherit and I know how to ranch the easy way. But because ranches sell out at to high a price, I am not able to do it the easy way and show my future ranch kids how to do it the easy way and insure the legacy of agriculture.
February 15, 2013 at 9:25 PM
And it is with this exact problem that we must look at alternatives to accessing land, whether that be leasing or partnering with established producers. No one ever said it’d be easy. As access to land, livestock, and money becomes more challenging, those that manage inputs at a minimum and utilize innovative thinking will be one step ahead of the rest.