By TIM THORNBERRY
Kentucky Correspondent LEXINGTON, Ky. — It is no secret farmers are getting older and by some accounts, the younger generation set to take their place is getting smaller.
According to the U.S. Environmental Protection Agency, “there are over 285,000,000 people living in the United States. Of that population, less than 1 percent claim farming as an occupation (and about 2 percent actually live on farms). There are only about 960,000 persons claiming farming as their principal occupation and a similar number of farmers claiming some other principal occupation.”
The average age of farmers located in a five-state Appalachian area that includes Kentucky is 57 years old, according to the USDA’s 2005-07 Agricultural Resource Management Survey. Lee Meyer, agricultural economist with the University of Kentucky (UK) College of Agriculture said on average, 30 percent of family farms successfully pass to the second generation, and only 10 percent pass to a third generation.
A workshop sponsored by the UK Cooperative Extension Service has been created to help farm families make that transition smoother. “This is a one-time workshop, but what we hope it will do is spark some broader interest,” said Meyer.
He also said many farms go through a forced transition when someone dies or retires and often, the owners haven’t planned for it.
“There aren’t the proper legal arrangements, their business hasn’t been assessed and there is not the right kind of insurance. One of the typical situations is the parents have the farm and finally realize they can’t farm forever, but there is no real money to take care of them,” said Meyer. “Then you have to cash in the farm, sell the land and that ends the farm right there.”
The Farm Transitions Workshop will address many of these issues through a series of lectures from national and international experts.
Speakers will include David Kohl, professor emeritus in agricultural finance and small business management at Virginia Tech; Steve Isaacs, UK extension professor in agricultural economics; David Marrison, Ohio State University extension educator and assistant professor in transitions and business planning; and a local attorney with expertise in farm estate planning, according to information from UK.
While making the transition from one generation to the next is part of the scope of the workshop, making a transition no matter the circumstances is the ultimate goal. “Our job is to help people accomplish their goals and not decide what they should be doing,” said Meyer. “We can help them access the tools they need so they are better off.”
While the notion that farmers may not have a replacement generation to take over once they are done may be a concern, it isn’t necessarily the total reality, noted Meyer. A case in point is UK’s Beginning Farmer Program, funded through the USDA.
“That seems to be showing that there is pretty good interest out there, so there might be that next generation of farmers. I think we are on target for filling that need,” he said.
George McCain is a classic example of a “next generation” farmer, although his situation isn’t about transition but keeping a family tradition going while filling a need in the agriculture industry.
McCain is the UK extension agent in agriculture natural resources in Marion County, as well as a farmer. His parents still operate the family farm and McCain has his own operation. He has used the knowledge learned from his family to keep the tradition going in his own way.
“The number-one thing that I’ve gained through growing up on a farm and the importance of it is a strong work ethic,” he said.
“Another thing my parents instilled in us as we decided we wanted to be a part of agriculture, is the importance of keeping records; and finally, most importantly, is looking at each individual ag enterprise as a separate deal.”
McCain is one of five children carrying on in the farming industry; an industry that still has many opportunities for a younger generation getting set to take the reins. It just may be in a different way – such as part-time farming or working in a field – that will help those farms that have grown exponentially and need the assistance of accountants and marketers, for example.
As young farmers ponder their future, it is important to remember farming is a business and should be approached that way, and it is a tough business especially during this economic downturn.
“It’s extremely tough from a financial standpoint. It’s like any other business with startup costs,” McCain said. “One other thing that I think that will hamper it even more in our area is the situation tobacco is in right now. In my view tobacco was a good crop for a young farmer to start out with.”
He still thinks there is money to be made in tobacco but with the availability of contracts, it is getting harder to come by.
There are still plenty of young people interested in the agriculture industry; the National FFA Conference is proof of that. But for those needing help in a transitional situation, be it to their children or to someone else, UK’s Farm Transitions Workshop should help guide that process.
There will be two days and locations in which the workshop will be conducted: Nov. 11 in Bowling Green and Nov. 12 in Henderson. The cost is $50 per farm, which includes up to three people. The fee for each additional person is $10.
To register for the Nov. 11 Bowling Green workshop, contact Joanna Coles, Warren County agricultural and natural resources extension agent, at 270-842-1681. Those interested in the Henderson County location should contact agricultural and natural resources extension agent Mike Smith at 270-826-8387.
For additional information about the workshop call Sarah Lovett, UK agricultural economics extension associate, at 859-257-7272. |
