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A closer look at Oregon's graying agriculture
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7/20/2011
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Article Content
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Eastern Oregon's Bob Levy is keeping the farm in the family
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The eventual exit of older farmers appears less ominous
In general, Oregon agriculture is getting older as the average age of farmers and ranchers is trending up. However, a closer look at US Census of Agriculture data shows that many successful operations are run by relatively younger men and women. It all depends on the types of farms they operate.
"There is still plenty of concern about the aging of agriculture, both in Oregon and nationally," says Brent Searle, special assistant to the director of the Oregon Department of Agriculture. "But when you delve into the statistics of the latest census and look at the type of farm and who is running it, it gets very interesting."
In the most recent census, the average age of principal operator in Oregon- the person most responsible for the day-to-day decisions and management of the farm- is at an all-time high of 57.5 years old. That average has trended up for a couple of decades. As recently as 1982, the average age of principal operator was 50.4 years old. Currently, Oregon exceeds the national average.
"Operators age 65 and over represent about 28 percent of all farmers and ranchers in Oregon while, at the other end of the spectrum, those under the age of 45 represent about 15 percent," says Searle. "That's about a 2-1 ratio of those we think will be exiting soon from farming as opposed to those who are coming up. It's a big chunk, and that's a concern. But just looking at the overall average age of farmer may not truly reflect what is going on."
A recent analysis by the US Department of Agriculture's Economic Research Service (ERS) states, "the eventual exit of older farmers appears less ominous based on the types of farms they operate." A look at Oregon's data seems to support that statement.
"Most of our operators over age 65- about two-thirds of them- tend to be in the retirement, residential, or lifestyle categories of farm operations," says Searle. "They aren't in full scale production anymore even though they are counted as agricultural operators. These folks rent out a lot of their land and control about 15 percent of the state's farm acreage. So they are important contributors to the landscape and the caring of our natural resources. They also provide a potential land base for new farmers looking for opportunities."
The census shows that 18 percent of all Oregon farms are operated by those 65 and older who fit into the retirement, residential, or lifestyle category. About 7 percent are operated by those 65 and older who are classified as small to medium-sized farms- operators who claim farming as their major occupation with annual sales less than $250,000. Only about 3 percent of the operations are run by those 65 and older that are classified as large family farms or non-family farms- operations with annual sales more than $250,000.
"On average, farms with higher levels of sales are generally associated with younger aged farmers as a group," says Searle.
As an example, Oregon farmers earning at least $100,000 or more annually in total sales, before expenses, are two to three years younger as an age group, on average, than those earning less than $100,000 in sales. The average age for the former is 55 years compared to nearly 58 years for the latter.
"In fact, only 18 percent of Oregon farmers with sales over $500,000 are 65 or older while 32 percent of farmers with annual sales between $2,500 and $100,000 are 65 or older," says Searle.
The census also shows that farms with higher annual sales are often multi-generational and have more households sharing in the net farm income.
"The good news is many farmers bring in their children or younger operators when the scale or amount of sales is large enough to support it," says Searle. "The bad news is that the farmers in the middle- those with annual sales less than $250,000 but who claim farming as their principal occupation- appear to have a hard time integrating family members or a new generation into an operation. Economics simply make it very challenging."
Solutions to the challenge of Oregon's aging farm population are not easy to find. Certainly, a single approach does not fit the diversity and complexity of the state's agriculture.
"Based on the statistics, the traditional or higher value farms are the ones that are more able to bring along the younger generation," says Searle. "Policies such as inheritance, taxation, farm succession- those issues are big when there is a family farm transition taking place. On the other end, you have new entry, small farmers. Their issues are finances and access to land. One approach could be to pair them up with some of the retiring farmers and finding matches where land is available, allowing these younger operators to start small and grow."
Despite Oregon's mosaic of farm types, commodities, and markets, they all aim to be economically, environmentally, and socially viable. Oregon needs a healthy agriculture industry.
"We must focus on keeping agriculture in Oregon viable and showing that the industry is a place younger people can come into," says Oregon Department of Agriculture Director Katy Coba. "Anything we can to promote a good business climate and help farmers be successful, that's where we need to focus our attention."
Despite current challenges facing agriculture, the recent census continues to demonstrate that Oregon operators are in it for the long haul. About 71 percent of the state's 38,553 principal operators- some 27,446 farmers and ranchers- have been on their present farm for more than ten years.
Communities supporting agriculture and government entities being aware of regulatory impacts on farming both have a role in the competitiveness of growers and how young people may feel about agriculture as a livelihood. But an influx of younger operators is clearly needed to sustain all types of Oregon farms.
For more information, contact Brent Searle at (503) 986-4558.
Story of the Week pdf version
http://oregon.gov/ODA/docs/pdf/news/110720aging.pdf
Audio Story of the Week
http://oregon.gov/ODA/news/110720aging_audio.shtml
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