AG 101:

AN INTRO TO
TODAY’S FARMING
National Press Foundation Journalist Training
St. Louis
9.15.19
TODAY ON OUR FARM…I WISH.
WHAT I
WISH WAS
AT OUR
FARM
TODAY
WHAT’S REALLY ON OUR FARM TODAY…
WHAT IS
REALLY
AT OUR
FARM
TODAY…
AG FACTS AND STATS
• All crayons have a bit of ag in them:
− 1 acre of soybeans can produce 82,368 Prang crayons
− Crayola crayons have beef tallow and beeswax in them.
• The longest recorded flight of a chicken is 13 seconds
 FARMERS AND RANCHERS ARE:
• The first locavores
• The key to sustainable food
systems
• Stewards of land, water and
animal welfare
• Innovative. Resilient.
Mission-driven.
• Dedicated to sustainability
beyond practices and
stewardship …the majority
want to leave a legacy by
passing on the operation to
the next generation
5 •
 WHO FARMERS ARE
• Multi-generational families who raise crops, livestock, produce,
nuts and the basic ingredients of all we eat. 99% of farms are
family farms.

• How the U.S. Department of Agriculture classifies farms:

− Small Family Farms - < $350,000 in gross farm income
− Midsize Family Farms – $350,000 - $999,000 in gross farm income
− Large-Scale Family Farms - $1,000,000 + in gross income
− Non-Family Farms - Farms where the principal operator and
individuals related to the operator do not own a majority of the business

• Ag is a classic example of the 80/20 rule – only more so: 10%

of farms account for 78% of production.
6

SOURCE: USDA-ERS
 THE CULTURE OF AGRICULTURE
• Generally conservative, but wildly progressive and innovative when
it comes to production technology and practices.
• Strong sense of community. Farmers are deeply involved in
churches, 4-H, Future Farmers of America, scholarship programs
and local efforts.
• Stewardship of land, water and animal welfare is taken seriously.
• Farmers are resourceful and independent.
• Modesty is a core virtue.
• Small world connections abound.
 FINANCES: WHAT DOES IT TAKE?
• More than money….but it takes a lot of money
• To start from scratch—with used equipment and frugal
management:
− A 1,500-acre (500 owned, 1,000 rented) corn and soybean farm
in Iowa: $5.1 Million
− A 250-cow dairy farm in Nebraska: $2.7 Million
− A 3,000-acre wheat farm in Kansas: $4.5 Million
• Risk-taking and resilience
• Financing for long-term purchases and annual operating loans

SOURCE: Shawn Williamson

 HOW DO FARMERS MAKE MONEY?
2019 Forecasted Animal and 2019 Forecasted Crop Cash Receipts
($ billion, nominal)
Products Cash Receipts
($ billion, nominal)

• Most of what
farmers produce
is sold wholesale
as a basic
ingredient

Data as of September 13, 2019

Source: USDA, Economic Research Service, Farm Income and Wealth Statistics.
 U.S. FARM PRODUCTION EXPENSES
Major Input Expenditures by Total, and Percent of Total
United States: 2018

Million dollars

USDA NASS –
August 2019
TECHONOLOGY TRANSFORMATION
Auto-Steer Equipment…High-Tech Seeds…Satellite Imaging…
On-Farm Weather Stations…Robotic Milking….
Enough Innovation That We Could Talk About it All Day

Adding to the fun of farming:

This farmer friend starts his truck
with an RFID chip implanted in his
hand…it also opens his locked
desk…because he can.
LABOR
• One U.S. farm feeds 165 people
annually in the U.S. and abroad.
• Number of ag workers: 856,300.
• Technology, automation and size of
equipment have dramatically
reduced labor needs for crop and
livestock producers….the same is
not the case for other sectors…but
on-farm labor shortages exist all
across agriculture.
 TRADE WARS
• Trade is critical to ag…and ag is critical
to trade
• Overall, 20% of ag production depends
on export markets
• The USMCA needs approval from
Congress:
− Mexico and Canada are solidifying their place
as two largest markets for U.S. ag
• China’s demand for soybeans has clearly
shifted to South America. African swine
fever in China, in part, has allowed China
to focus on supplies from South America.
13
 FARMER SENTIMENT TOWARDS TRUMP
• Despite frustrations, in
general, farm country
supports President Trump
and his administration
• Ongoing trade war with
China and low prices are
beginning to wear thin that
support
− The Farm Journal Pulse
survey shows that August was
the first time “strongly
approved” dropped below 50%
14
NEED QUICK ACCESS TO FARMERS
OR AG EXPERTS?

REACH OUT ANYTIME:

Charlene Finck
Division President
Farm Journal
573-489-3060

15