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A Safety Net for Farm Households Discussions in the public arena have raised fundamental questions about the ultimate goals of farm policy and the need for establishing a safety net for farm households. This report examines four scenarios for government assistance to agriculture based on the concept of ensuring some minimum standard of living. Lower income farmers would benefit relatively more from the safety net scenarios, while farmers producing selected commodities benefit relatively more from current farm programs. Farm households in the Northern Crescent, the Eastern Uplands, the Southern Seaboard, and the Fruitful Rim all would generally receive a higher level and a greater proportion of benefits than under current programs. A clear understanding of objectives and intended beneficiaries must be the starting point for discussions of future farm policy. ERSAER788 44 pp 12/6/2000 12:00:00 PM 25.50 A Temporal Comparison of Sources of Variability in Farm Household Income An ERS Elsewhere file of a journal article published in Agricultural Finance Review. eejs0214 3/1/2002 America's Diverse Family Farms: Assorted Sizes, Types, and Situations This report describes a farm typology developed by the Economic Research Service (ERS), which categorizes farms into more homogeneous groups than classifications based on sales volume alone, producing a more effective policy development tool. The typology is used to describe U.S. farm structure. ERSAIB769 8 pp 5/31/2001 11:00:00 AM 12.00 Characteristics and Production Costs of U.S. Cow-Calf Operations Differences in regional conditions were the chief influence on variations in cow-calf production costs across the United States. Cow-calf operators in the West and Southern Plains have significant cost advantages over operators in other regions because, with a longer grazing season, their herds require less supplemental forage during the winter. The larger acreage size of operations in the West and Southern Plains also can support more cows and take advantage of economies of scale (spreading the fixed investment over more units of production). Because of the harsher climate, operations in the North Central region and Northern Plains spend significantly more to maintain their herds. Cowherds in the Southeast are primarily on small and part-time operations. These findings are based on the 1996 Agricultural Resource Management Study (ARMS), the most recent national survey of cow-calf producers. ERSSB974-3 11/16/2001 Characteristics and Risk Management Needs of Limited-Resource and Socially Disadvantaged Farmers Small U.S. farms and those run by socially disadvantaged minority operators tend not to purchase insurance or to participate in insurance-type programs operated by USDA. This report traces the lack of use of such risk management measures to several characteristics of such farmers, who include females, blacks, American Indians, Asian/Pacific Islanders, and operators of Spanish origin. These farmers tend, more than the typical U.S. farm, to raise livestock rather than crops, and there are no government-sponsored insurance-type programs for livestock. ERSAIB733 104 pp 4/1/1997 33.00 Credit in Rural America In response to a mandate in the Federal Agriculture Improvement and Reform Act of 1996, this report provides information on the major financial institutions and Federal programs active in rural America, the performance of rural financial markets, and the costs and benefits of proposals to expand the lending authority of the Farm Credit System (FCS) and commercial bank access to FCS funds. After examining available data on agricultural, housing, small business, and community development loans, lenders, and programs, this report concludes that rural financial markets work reasonably well in serving the financial needs of these sectors of the rural economy. While localized financial market problems exist in some rural communities, and not all segments of the rural economy are equally well served, financial market failures are neither endemic to nor epidemic in rural America. Therefore, policies which provide untargeted subsidies to a broad range of rural lenders or borrowers such as those examined in this report are unlikely to be cost effective. While the proposals we examined to expand FCS lending authority and bank access to FCS funds would benefit their sponsors and some rural communities, they would do little to address rural credit market imperfections and, at the national level, their associated costs would outweigh their benefits. ERSAER749 128 pp 4/1/1997 36.00 Direct Farm Marketing as a Rural Development Tool, Rural Development Perspectives, Vol. 12, No. 2. . Many farmers, government officials, and rural advocates are enthusiastic about the prospects of direct farm marketing for bolstering farm income and promoting rural development. Direct marketing plays a role in rural development by encouraging a climate of entrepreneurship and innovation, attracting agricultural tourists, and promoting alternative forms of agriculture. However, an analysis of 1992 Census of Agriculture data indicates that the income from direct selling is relatively small and limited to communities near urban areas. Communities in remote locations need to make a concerted effort to benefit from direct marketing. Contact: fgale@ERS.USDA.gov. pp 19-25 2/1/1997 Effects of Federal Tax Policy on Agriculture This report analyzes the effects of the current Federal tax code on farming. It is the first study that applies the ERS farm typology to tax data. The study was initiated by the USDA National Commission on Small Farms and also evaluates tax proposals to assist beginning farmers. Investment, management, and production decisions in agriculture continue to be influenced by Federal tax laws, although this influence may be less than in earlier decades. ERSAER800 60 pp 5/1/2001 9:00:00 AM 27.00 ERS Farm Typology for a Diverse Agricultural Sector The Economic Research Service (ERS) developed a farm typology which categorizes farms into more homogeneous groups than do classifications based on sales volume alone, producing a more effective policy development tool. The typpology is used to describe U.S. farms. ERSAIB759 8 pp 9/1/2000 12:00:00 PM 12.00 Income, Wealth, and the Economic Well-Being of Farm Households Agricultural policy is rooted in the 1930's notion that providing transfers of money to the farm sector translates into increased economic well-being of farm families. This report shows that neither change in income for the farm sector nor for any particular group of farm business can be presumed to reflect changes confronting farm households. Farm households draw income from various sources, including off-farm work, other businesses operated and, increasingly, nonfarm investments. Likewise, focus on a single indicator of well-being, such as income, overlooks other indicators such as the wealth held by the household and the level of consumption expenditures for health care, food, housing, and other items. Using an expanded definition of economic well-being, we show that farm households as a whole are better off than the average U.S. household, but that 6 percent remain economically disadvantaged. ERSAER812 77 pp 7/29/2002 12:30:00 PM 29.50 Organic Produce, Price Premiums, and Eco-Labeling in U.S. Farmers' Markets The popularity of farmers' markets in the United States has grown concurrently with organic production and consumer interest in locally and organically produced foods. This research describes the significance of farmers' markets as market outlets for many organic farmers, and recent shifts in relationships between organic growers, market managers, and customers. Market managers in more than 20 States answered questions by phone pertaining to the 2002 market season. Their responses provide insight into recent grower, manager, and customer decisionmaking and attitudes about foods advertised and sold as organic at farmers' markets. ERSVGS-301-01 12 pp 4/9/2004 23.00 Rural Development Perspectives, Vol. 12, No. 2 Nontechnical articles on the results of new rural research and what those results mean. Shows the practical application of research in rural banking, aging, housing, the nonmetro labor force, poverty, and the effect of farm policies on rural areas. Contact: dbowers@ERS.USDA.gov. ERSSUBRDP 3 issues 2/1/1997 26.00 Rural Development Perspectives, Vol. 12, No. 3 Nontechnical articles on the results of new rural research and what those results mean. Shows the practical application of research in rural banking, aging, housing, the nonmetro labor force, poverty, and the effect of farm policies on rural areas. Contact: dbowers@ERS.USDA.gov. ERSSUBRDP 3 issues 6/1/1997 26.00 Rural Development Perspectives, Vol. 14, No. 2 Nontechnical articles on the results of new rural research and what those results mean. Shows the practical application of research in rural banking, aging, housing, the nonmetro labor force, poverty, and the effect of farm policies on rural areas. ERSRDP14-2 3 issues 8/1/1999 26.00 Rural Development Perspectives, Vol. 14, No. 3 Nontechnical articles on the results of new rural research and what those results mean. Shows the practical application of research in rural banking, aging, housing, the nonmetro labor force, poverty, and the effect of farm policies on rural areas. ERSRDP14-3 3 issues 10/1/1999 26.00 Structural and Financial Characteristics of U.S. Farms, 1995: 20th Annual Family Farm Report to Congress National average statistics related to farm production mask the diversity in the Nation's 2 million farms and the people who operate them. Farms in the United States differ not only by size (sales and acres) and type of production, but also by organizational characteristics (land ownership, legal organization, contracting arrangements) and financial characteristics (debt, assets, income, expenditures). Farm operators and their households vary with respect to demographic characteristics (occupation, age, education), financial characteristics (dependence on farm income, operator/spouse labor allocation), and management characteristics (information sources, business goals). ERSAIB746 108 pp 12/1/1998 33.00 Structural and Financial Characteristics of U.S. Farms: 2001 Family Farm Report Family farms vary widely in size and other characteristics, ranging from very small retirement and residential farms to establishments with sales in the millions of dollars. The farm typology developed by the Economic Research Service (ERS) categorizes farms into groups based primarily on occupation of the operator and sales class of the farm. The typology groups reflect operators’ expectations from farming, position in the life cycle, and dependence on agriculture. The groups differ in their importance to the farm sector, product specialization, program participation, and dependence on farm income. These (and other) differences are discussed in this report. ERSAIB768 101 pp 5/31/2001 11:00:00 AM 33.00 Tobacco and the Economy: Farms, Jobs, and Communities Public health policies intended to reduce the incidence of smoking-related disease adversely affect thousands of tobacco farmers, manufacturers, and other businesses that produce, distribute, and sell tobacco products. This report assesses the likely impacts of declining tobacco demand, and identifies the types of workers, farms, businesses, and communities that are most vulnerable to loss of tobacco income and jobs. The dollar impact on the farm sector of a reduction in cigarette demand will be smaller than that experienced by manufacturing, wholesale, retail, and transportation businesses, but tobacco farms and their communities may have the most difficulty adjusting. Many tobacco farmers lack good alternatives to tobacco, and they have tobacco-specific equipment, buildings, and experience. Most communities will make the transition to a smaller tobacco industry with little difficulty, because tobacco accounts for a small share of the local economy. However, a number of counties depend on tobacco for a significant share of local income. ERSAER789 44 pp 9/15/2000 25.50 U.S. Agriculture, 1960-96: A Multilateral Comparison of Total Factor Productivity This study provides estimates of the growth and relative levels of agricultural productivity for the 48 contiguous States for the period 1960 to 1996. For the full 1960-96 period, every State exhibits a positive and generally substantial average annual rate of productivity growth. There is considerable variance, however. The wide disparity in growth rates resulted in substantial changes in the ranking order of States by productivity. For each year, we calculate the coefficient of variation of productivity levels. We use these coefficients to show that the range of levels of productivity has narrowed over time, although the pattern of convergence was far from uniform. The fact that in some States, productivity grew faster than others and yet the cross-section dispersion decreased, implies that the States whose productivity grew most rapidly were those with lower initial levels of productivity. This result is consistent with Gerschenkron’s notion of the advantage of relative backwardness. The States that were particularly far behind the productivity leaders had the most to gain from the diffusion of technical knowledge and proceeded to grow most rapidly. We also observe a positive relation between capital accumulation and productivity growth, implying embodiment of technology in capital. ERSTB1895 56 pp 5/21/2001 12:00:00 PM 27.00 Understanding Rural America The diversity of rural America and the changes it has undergone in the last half century have resulted in a wide variety of economic conditions and needs. This full-color report documents changes in rural employment, population, and well-being for six categories of rural counties: those that depend on farming, manufacturing, and services, and those that have high concentrations of retirees, Federal lands, and poverty. ERSAIB710 36 pp 2/1/1995 25.50