COLUMBUS, Ohio – As if beginning farmers didn’t have enough to worry about, the USDA announced in November that the average price of cropland in Ohio rose 8.6 percent last year, with an average price per acre at about $8,200. The values of farmland in states bordering Ohio were: Indiana ($8,000 per acre), Kentucky ($4,350 per acre) and Michigan ($5,850 per acre).

Some advocates say that’s making it increasingly hard for beginning farmers to enter the market. When talking about the challenges facing beginning farmers and ranchers, the first items that generally come to attention are access to land and access to capital. The availability of land is limited, at least at price levels thought to be competitive for beginning operators.

Kyle and Dawn Heidlebaugh are fourth-generation corn and soy farmers in Findlay, Ohio. They own about 1.600 acres worth of farmland and will soon transition their farm to two of their daughters.

Dawn said doing that right now is challenging, especially because many farm lenders won’t approve loans to beginning farms with no collateral.

“Even now, if they were able to get some ground, whether it be rent ground or buy ground, they would still have to have their dad’s equipment,” she said. “So, I mean we would help them with whatever they need. It’s just very hard for these kids to get into this industry.”

Adding to the pressure is increasing input prices with a projected decrease in farm revenue at the end of 2023, according to the USDA.

Dawn said seeing the same land the family bought just a few years ago keep rising in price is stressful.

“If it keeps going up 10 percent, that means next year, the same ground that we bought could be 10 percent more. Can you imagine buying it again? It’s just outrageous,” she said.

Elizabeth Long, an area manager at AG Resource Management (a specialty financing group with offices in Bellefontaine, Ohio) said operating a farm is hard. But it’s even harder for beginning farmers looking to apply for a loan for land or equipment.

“The biggest question they’re going to ask when they’re looking at financing is what are the collateral?” Long said. “A traditional lender will look at a young farmer and say, ‘well, you don’t have equipment and you don’t have real estate.’”

Long said inflation and investors buying land for development are driving farmland prices higher. Because of those barriers, she’s seen more beginning farmers use creative approaches to enter the market, like growing wheat or hops and using their crop insurance as collateral.

The Heidlebaugh family is working with financial advisers to figure out how to best transition their farm but Dawn said it won’t be easy.

“We are a very small family business and it’s all pretty much all hands on deck when it comes to farming,” Dawn said. “We’ve got four kids and we’ve got two who want a farm. So, it’s kind of rough to try to figure out how we’re going to transition.”

Opportunities and support for beginning farmers and ranchers have long been core to discussions about agriculture and rural America. Whether through the broader farm bill or through various state and local efforts, policies and programs that target beginning farmers and ranchers are popular and widespread.

Many extension offices in Ohio, Kentucky and Indiana offer beginner and small farm schools for those wanting to start a small farm. At these schools, attendees can pick up valuable tools to get started, such as learning about farm taxes, obtaining farm financing, insurance and liability for their farm, developing real-life expectations, developing a farm business plan, learn about marketing and selling agricultural products, developing a family and farm balance sheet and so much more.

According to the 2017 U.S. Census of Agriculture, a little more than 25 percent of the two million-plus farms and ranches in the U.S. were operated by a principal producer that was a new or beginning farmer.

And there’s another big issue facing the first-time farmer. A recent study conducted by Ohio State University (lead author Fiona Doherty) has brought to light the prevalent mental health issues faced by beginning farmers. The study surveyed a group of farmers from Ohio and Michigan, finding that 58 percent of beginning farmers reported experiencing mild to severe symptoms of anxiety or depression.

These mental health challenges faced by beginning farmers stem from a combination of factors, including the demanding nature of farming, financial pressures and social isolation. Additionally, beginning farmers often face unique challenges due to unequal access to land, farm resources and capital.