Farm, ranch numbers dropped again in 2009

By ART HOVEY / Lincoln Journal Star | Posted: Friday, February 12, 2010 10:40 pm

Net farm income hit record levels in the state in 2008, but the number of farms and ranches in Nebraska fell again in 2009, according to numbers released Friday by the National Agricultural Statistics Service.

The loss of another 200 farm operations fits a recent pattern in which the best the state has done is stay even with the previous year. Since 1995, the total is down more than 9,000, or about 15.7 percent.

John Hansen, president of the Nebraska Farmers Union, said one contributor to declining numbers of crop and livestock producers is the difficulty the next generation faces in getting established.

"The more senior members of the family, if they're not in a financial position to help transfer assets at below market value and help finance beginning farmers, it's difficult -- in this high-risk, low-margin business called agriculture -- to get a foothold," Hansen said.

National numbers released Friday dropped the total number of farms and ranches by 90,000 to about 2.2 million.

Elsewhere in the region, the numbers were unchanged from 2008 in Iowa, Minnesota, Missouri and Kansas, down by 300 in Colorado, and up by 200 in South Dakota.

In Nebraska, the number of operations with annual sales below $100,000 fell by 1,400. The number above $100,000 rose by 1,200.

Federal statisticians no longer track state-by-state changes in livestock operations, but Hansen and Keith Olsen, president of the Nebraska Farm Bureau Federation, suspect some negative influence in that sector from high feeding costs and lower consumer demand for meat.

Olsen also touched on the difficulties of sons and daughters finding a place in the production sector.

"The big challenge of getting involved in agriculture is the cost of establishing a farm," he said. "And if you say you want to farm and you go buy land and equipment, it takes a tremendous amount of capital. And the bigger challenge might be to find land to rent."

Earlier this week, state lawmakers rejected a bill that would have put $4 million from a state investment fund into loans for beginning farmers and small businesses.

The proposal, offered by state Sen. Annette Dubas of Fullerton, was modeled after a similar approach in Kansas and Indiana. But critics said it could become a precedent at a time when state spending is strained.

The Farm Bureau was among the promoters of the idea in Nebraska.

"It just appears that the price tag on this bill this year . . . chances of it moving forward are awfully, awfully slim," Olsen said.

"There's no question," said Hansen, "that there are a lot more farm and ranch kids that would like to come back and farm and ranch than are able to -- and that's a bright spot."

But record farm income in 2008 is not enough to make a difference. "The trends we have right now that drive these numbers are long-term and they are chronic. And so, if you have four to five years of low income and one year of good income, it doesn't change the trend line."

The 2009 drop of 200 is much less than Nebraska experienced over the two-year period from 1999 to 2001, when it lost 4,000 farms and ranches.

"We don't like to see any decline," Olsen said, "but it's encouraging that it's as low as it is."

Reach Art Hovey at 473-7223 or at ahovey@journalstar.com