The Beginning Farmer Resource Network of Maine Presentation to Agricultural Committee March 2015
BFRN is a coalition of Maine agriculture agencies & organizations working together to connect aspiring, beginning, and transitioning farmers to resources for farm business success. We formed in the summer of 2012 in response to a SARE funded workshop called “Reading the Farm” that was organized by Ellen Mallory, UMCE and focused on two Beginning Farmer farms in Somerset County. We operate on our collective good will, availability and the support of our respective agencies and organizations. Our website is hosted and maintained by us with the generous technical assistance of UMCE.
BFRN includes 19 agencies and organizations, including: Coastal Enterprises, Inc. * Cultivating Community * Farm Credit East * Land For Good * Maine AgrAbility * Maine Association of Conservation Districts * Maine Aquaculture Association * Maine Department of Agriculture, Conservation and Forestry * Maine Farm Bureau * Maine Farmland Trust * Maine Federation of Farmers' Markets * Maine Organic Farmers and Gardeners * Maine Risk Management and Crop Insurance Education Program * Maine Sustainable Agriculture Society * Sea Grant – Maine * USDA Farm Service Agency * USDA National Agricultural Statistics Service * USDA Natural Resources Conservation Services * University of Maine Cooperative Extension Today’s Presenters are: Stephanie Gilbert, DACF; Gary Keough, USDA – NASS; Abby Sadauckas, MOFGA; Daniel Ungier, Cultivating Community
Topics to be covered • Census Data: Typography of Farms Overview • Farmers with less than 10 years experience: Our New Farmers • We Need MORE Successful Farmers: Recommendations & Discussion
The Beginning Farmers of the 2012 Ag Census
8,173 Farms in Maine – 8 Typologies Small Family Farms with Gross Cash Farm Income <$150K, 2019, 25% Small Family Farms with Gross Cash Farm Income >$150-349K , 208, 2% Retirement Farms, Four Types assumed 2,283, 28% to have fewer "Beginning Farmers", 542, 7% Large, Large $5M + 9 Large $M - $4,999,999 98 Mid-Sized >$350K- $1M 200 Non-Family 235 542 Off-Farm Occupations, 3,121, 38%
The Four Typologies that include most of Maine’s Beginning Farmers • Retirement Farms - Small farms whose operators report they are retired, although they continue to farm on a small scale. • Off-Farm Occupation Farms - Small farms whose operators report a primary occupation other than farming. The category also includes a small number of farms whose operators do not consider themselves in the labor force. • Small Family Farms – Gross Cash Farm Income (GCFI) divided into two subcategories based on gross cash farm income: • GCFI < $150,000 • GCFI $150,000 to $350,000
Beginning Farmers in 7 of 8 Typologies 3,500 3,000 993 2,500 283 2,000 655 1,500 2128 1,000 2000 1364 500 46 29 20 5 0 179 180 189 0 93 9 10 or more years on any farm less than 10 years experience 1,960 Beginning Farmers in the First Four Typologies
These Four Typologies own/operate 70% of all Farmland Off-Farm Occupation, Four Types with 397,046, 27% fewer "Beginning Farmers", 441,478, 30% Small Family Farm >$150-$349K , 87,804, 6% Retirement Farm, Small Family Farm 297,808, 21% <$150K, 229,968, 16% 1,454,104 Total Acres
These Four Typologies earn 23% of all Farm Income Off-Farm Occupation, 36,853, 5% Retirement Farm, 36,884, 5% Four Types with Small Family Farm fewer "Beginning <$150K, 54,666, Farmers", 7% 611,975, 77% Small Family Farm >$150-$349K, 49,018, 6% $810,241,000 Total Gross Cash Farm Income
Sources of Gross Cash Farm Income (GCFI) Retirement Off- Farm Small Family Farm Small Family Farm Four other < $150K $150K – $349K Typologies $611,975 Sales ($000) $29,386 $28,989 $46,085 $46,627 $4,151 Government Payments $1,628 $1,330 $1,936 $1,117 ($000) $7,400 Farm Related Income $5,870 $6,534 $6,645 $1,274 ($000) $623,526 GCFI ($000) $36,884 $36,853 $54,666 $49,018 GCFI includes: farm operator's sales of crops & livestock, fees for delivering commodities under production contracts, government payments & farm-related income Sales as % of GCFI 79.7% 78.7% 84.3% 95.1% 98.1% Government Payments + 20.3% 21.3% 15.7% 4.9% 1.9% Farm Related Income as % of GCFI 77% % of State GCFI 5% 5% 7% 6% These Four Typologies generate 23% of State GCFI
The Race and Ethnicity of the Operators Retirem Off- Farm Small Family Small Family Four other ent Farm < Farm Typologies $150K $150K – $349K Hispanic 6 26 20 5 1 American Indian 6 4 6 1 Asian 2 13 Black or African 3 11 53 1 American White 2,264 3,080 1,929 208 233 More than One 8 13 31 3 “More than one” means the respondent reported they identify themselves as a mixed race, for example Asian-Caucasian. At the state level, the number of African-American farm operators since 2002: • 1 in 2002 • 17 in 2007 • 68 in 2012
The Gender of the Operators Retirement Off- Small Family Small Family Four other Farm Farm < $150K Farm Typologies $150K – $349K Male 1,805 2,223 1,114 185 465 Female 478 898 905 23 77 At the state level, the percent of female principal farm operators since 2002: • 22% in 2002 • 25% in 2007 • 29% in 2012
These 7,631 farms manage 1,012,626 acres of farmland… 70% of Maine’s Farmland 23% of Maine’s State Gross Farm Income … to produce less than ¼ of Maine’s Gross Farm Income
Topics to be covered • Census Data: Typography of Farms Overview • Farmers with less than 10 years experience: Our New Farmers • We Need MORE Successful Farmers: Recommendations & Discussion
All Typologies Years Present on Farm of Principal Operator All Farms 5 years or less 6-10 years 11 years or more All Typologies Farms (number) 8,173 1,286 1,374 5,513 Farms (percent) 100% 15.7% 16.8% 67.5% Land in Farms (acres) 1,454,104 ac 118,609 ac 201,943 ac 1,133,552 Average Size of Farm 178ac 92ac 147 206 (acres)
Demographics of Operators All Farms 5 years or less 6-10 years 11 years or more All Typologies Farms # 8,173 1,286 1,374 5,513 % of Farms with off- 94% 93% 91% 95% farm income % Male 71% 64% 60% 75% % Female 29% 36% 40% 25% Average Age 57.0 45.5 50.7 61.3
All Typologies - Net Cash Farm Income of Operators All Farms 5 years or less 6-10 years 11 years or more All Typologies Farms # 8,173 1,286 1,374 5,513 $ dollars $163,075,000 $1,008,000 $26,189,000 $135,878,000 Average per Farm $19,953 $784 $19,060 $24,647 $ dollars Keep people farming!
Using the U.S. Census Bureau’s Business Dynamics Statistics database, researcher Scott Shane plotted five-year survival rates by industry for firms founded in 2005. His analysis revealed that mortality rates vary considerably by industry and are reported as follows: Industry 5-Year Survival Rate (%) Mining 51.3 Manufacturing 48.4 Services 47.6 Wholesaling 47.4 Agriculture 47.4 Retailing 41.1 Finance/Insurance/Real Estate 39.6 Transportation 39.4 Communications/Utilities 39.4 Construction 36.4 Source: Smallbiztrends.com http://smallbiztrends.com/2012/09/failure-rates-by-sector-the-real-numbers.html
Decline in farm operators farming 5-9 years: 2007 2012 Net Change 1 – 4 years 934 993 + 59 5 – 9 years 1,480 1,432 - 48 10 + years 5,722 5,748 + 26 All farmers 8,136 8,173 + 38
Land Tenure 5 years or less 6-10 Years 1,286 farms Tenants Tenants 1,374 farms 7% 15% Part Owners 15% Part Owners 14% Full Owners Full Owners 71% 78% Tenants 3% Part Owners 22% 11+ Years 5,513 farms Full Owners 75%
Topics to be covered • Census Data: Typography of Farms Overview • Farmers with less than 10 years experience: Our New Farmers • We Need MORE Successful Farmers: Recommendations & Discussion
Recommendations MOFGA Farm Training Project, Ararat Farms, Lincolnville Jasper Mefferd, One Drop Farm, Cornville
Recommendations TECHNICAL ASSISTANCE • Target business planning & training opportunities for each typologies • Develop more hands-on, on-farm training opportunities for all typologies • And professional services – legal, financial, information technology RECRUITMENT – Net Gain 38 from 2007 to 2012 Figure out how many new farmers per year: • To keep farmland acres in agriculture? • To diversify Maine’s ag economy across typologies? • To grow Maine’s ag cash receipts?
Recommendations LAND ACCESS • Increase for all farm types & scales of operations • Rented land is the primary entry level MARKET DEVELOPMENT • Aggregation, Distribution Systems • Balancing Wholesale / Retail • Increase Out-of-State export SURVIVABILITY & SUSTAINABILITY • Balancing Work Life/Family • Labor needs • Be aware of changes in the demographics • Change thinking & label from “Hobby Farm” to “Part -Time Farm ” • Measure baseline and then increase Maine’s Farm Survival Rate
Thank you!
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