Finding The Next Generation And Keeping The Middle In Agriculture
By: Doug Busselman, Executive Vice President
Last week, United States Agriculture Deputy Secretary Kathleen Merrigan came to Nevada for a visit. She came through Las Vegas on Thursday as part of the Obama Administration’s efforts to spotlight wherever federal stimulus dollars might have landed on the ground and taking credit for whatever good might have come from the spending. On Friday, she came North to Reno and stopped by the 2010 version of the Nevada State Fair, holding a listening session with Nevada agricultural producers, interested in discussing the work her agency is doing and how they might help out more.
Most of Nevada’s agriculture is not involved in government programs offered by the various agencies of the United States Department of Agriculture – so holding a meeting in Reno is far different from meeting in the Midwest, South or other parts of the country where Farm Bills are a much bigger deal. During the conversation though, one important point was raised by a producer who was concerned about the ability of one generation of agricultural producer being able to transition the ownership of their family’s ranch to the next generation.
Merrigan noted that this concern about getting a next generation of agricultural producer is on the radar screen of her boss, Agricultural Secretary Tom Vilsack and others at the United States Department of Agriculture. It’s too bad the U.S. Senate who are stalling on dealing with the Death Tax situation weren’t as in-tune with at least a portion of the issue involving generational transitions, but then the leadership of the U.S. Senate is more concerned with tax increases and punitive actions for anyone who has acquired anything…
Another producer also raised the issue of the challenge in sustaining a mid-sized agricultural operation on a going forward basis. Smaller agricultural operations have the ability to be part-time business enterprises with the producer likely employed in off-the-farm work to make a living. Larger operations, with sales of enough magnitude are able to produce enough income where at least one of the family members is able to stay on the farm/ranch and get the work done. The middle sized ag. operation isn’t big enough to generate the revenue to support the business and the family, but still is of the size where getting the work accomplished and working off the operation is difficult.
Again, Merrigan noted that the “disappearing middle” is of concern to policy makers as they think through the future of farm programs.
Having an agricultural business climate where making a sufficient profit is possible needs to be on the minds of policy makers at both the national and state level. This isn’t to suggest that government’s role has to be manifest in the form of subsidies or other targeted benefits. Ideally, the market-place will provide the rewards necessary for long-term sustainability – as well as offering the opportunity for unsuccessful operations to go out of business.
In an environment which rewards entrepreneurs who succeed, applying their creativity and approach to business operations, agricultural entrepreneurs can also ply their trade. Government policy which allows for capital formation to take place and transfer from one generation to the next without the negative consequences envisioned by those currently in power would be as much of a solution as we should expect and have the economic system we’re supposed to have in operation.
Last week, United States Agriculture Deputy Secretary Kathleen Merrigan came to Nevada for a visit. She came through Las Vegas on Thursday as part of the Obama Administration’s efforts to spotlight wherever federal stimulus dollars might have landed on the ground and taking credit for whatever good might have come from the spending. On Friday, she came North to Reno and stopped by the 2010 version of the Nevada State Fair, holding a listening session with Nevada agricultural producers, interested in discussing the work her agency is doing and how they might help out more.
Most of Nevada’s agriculture is not involved in government programs offered by the various agencies of the United States Department of Agriculture – so holding a meeting in Reno is far different from meeting in the Midwest, South or other parts of the country where Farm Bills are a much bigger deal. During the conversation though, one important point was raised by a producer who was concerned about the ability of one generation of agricultural producer being able to transition the ownership of their family’s ranch to the next generation.
Merrigan noted that this concern about getting a next generation of agricultural producer is on the radar screen of her boss, Agricultural Secretary Tom Vilsack and others at the United States Department of Agriculture. It’s too bad the U.S. Senate who are stalling on dealing with the Death Tax situation weren’t as in-tune with at least a portion of the issue involving generational transitions, but then the leadership of the U.S. Senate is more concerned with tax increases and punitive actions for anyone who has acquired anything…
Another producer also raised the issue of the challenge in sustaining a mid-sized agricultural operation on a going forward basis. Smaller agricultural operations have the ability to be part-time business enterprises with the producer likely employed in off-the-farm work to make a living. Larger operations, with sales of enough magnitude are able to produce enough income where at least one of the family members is able to stay on the farm/ranch and get the work done. The middle sized ag. operation isn’t big enough to generate the revenue to support the business and the family, but still is of the size where getting the work accomplished and working off the operation is difficult.
Again, Merrigan noted that the “disappearing middle” is of concern to policy makers as they think through the future of farm programs.
Having an agricultural business climate where making a sufficient profit is possible needs to be on the minds of policy makers at both the national and state level. This isn’t to suggest that government’s role has to be manifest in the form of subsidies or other targeted benefits. Ideally, the market-place will provide the rewards necessary for long-term sustainability – as well as offering the opportunity for unsuccessful operations to go out of business.
In an environment which rewards entrepreneurs who succeed, applying their creativity and approach to business operations, agricultural entrepreneurs can also ply their trade. Government policy which allows for capital formation to take place and transfer from one generation to the next without the negative consequences envisioned by those currently in power would be as much of a solution as we should expect and have the economic system we’re supposed to have in operation.
Posted by Doug Busselman at 8/31/2010 8:50 AM 
Categories: Agriculture
Tags: United States Department of Agriculture Nevada Death Taxes Capital Gains Taxes Ag Policy
Categories: Agriculture
Tags: United States Department of Agriculture Nevada Death Taxes Capital Gains Taxes Ag Policy
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