Optimism and Success Discovered in Agribusiness Survey
DOYLESTOWN - Corn Belt
farmers, farm editors, bankers
and an auctioneer participated in
the sprmg semester Agricultural
Policy class at Delaware Valley
College of Science and Agriculture,
Doylestown.
Agribusiness students responded
to recent media reports on the
Midwest farm situation by
develping five basic questions
about the farm economy. They
then interviewed 20 agriculturists
in Illinois, lowa, Kansas, Missouri
and Wisconsin by telephone.
The class, many from
metropolitan backgrounds,
discovered optimism and success
as well as personal and economic
problems among the responses.
A St. Charles, Missouri fanner
credited his location near river
terminals for more favorable grain
prices. He reported a high number
of farm closeout auctions in north
central Missouri.
An Alamakee County, lowa
auctioneer reported depressed
land values and low auction prices
for machinery and livestock in the
tri-state region of lowa, Missouri
and Wisconsin.
Several central Illinois fanners
were optimistic, crediting good
financial records, efficient
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Dairy farmers in lowa and
Wisconsin told of milk prices below
their costs of production.
A hog and wheat producer in
Kansas credited diversification
and good production levels for his
success.
Many of the participants voiced
the opinion that past government
policies and fanners’ financial
management practices con
tributed to the current situation,
oome farmers misjudged the risk
associated with long-term loans,
while financial advisors were
overly optimistic about prospects
for sustained income to reduce
debts.
Declining land and equipment
values resulted in high ratios of
debts to assets. Numerous farmers
conceded they did not understand
cash-flow management; there
were also some who appeared
reluctant to adopt better financial
management practices.
Two farmers found it difficult to
admit they would not be farming in
1986.
One woman blamed neither
government nor bankers,
acknowledging she and her
husband were responsible for most
of their financial problems.
Farmers and a banker viewed
reduced government involvement
in agriculture as the best course of
action.
An lowa dairy and hog farmer
was angered by short-sighted
political actions that contributed to
t long-term economic problems. He
' suggested that lobbyists often
confuse, rather than inform,
lawmakers.
Most farmers would like to see a
long-term farm program for
commercial farms that is different
than the subsistence support
needed by low-volume farms with
high production costs.
A student from the New York
metropolitan area concluded that
counseling and training should be
provided for families forced to quit
fanning. She proposed workshops
on career alternatives and
assistance in starting service-type
businesses.
Based on the information
gathered through the telephone
survey, the students made the
following recommendations:
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# i
farmers should utilize the
Cooperative Extension Service and
agribusiness firms to assist in
financial records, management
decision-making, and planning
marketing strategies.
Professionals should be hired to
aid in setting up and maintaining
financial records which provide
net profit and cash-flow in
formation and analysis data for
decision making.
Farmers must become informed
participants in the development of
farm policy by being active in their
farm and commodity
organizations and political parties.
Farm families forced to leave
farming should he provided
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counseling, training and
assistance to start service-type
businesses needed in their area, or
to relocate.
The federal government should
support research to expand the use
of agricultural products and to
develop international markets.
Reflecting upon the students’
report, Dr. John H. Avery,
Chairman of Agribusiness at the
College, said, “Our students
become emotionally involved in
the farm situation. They obtained
new perspectives on farming and a
realization on the communication
process required to develop
policies and programs. ’ ’