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3rd National Small Farms Conference 2002 Highlights


Opening
3rd National Small Farm Conference held September 17-20, 2002 in Albuquerque, NM. Agricultural program managers, specialists, educators and producers, 564 strong, participated in the 3rd National Small Farm Conference held in the Albuquerque Convention Center. New Mexico State University's Cooperative Extension Service, under Edmund Gomez, served as co-sponsors and hosts, expertly coordinating logistics and many other on-site conference aspects. Dr. Alma Hobbs, USDA/CSREES Deputy Administrator for Economic and Community Systems, the unit under which the CSREES Small Farm Program is housed, brought the USDA greetings to conference participants.

Dr. Gary Cunningham, CSREES Associate Administrator, moderated a general session on building support for small farms.

Conference Chair, USDA CSREES National ProgramLeader for Small Farms, Denis Ebodaghe, who provided leadership for the conference, thanked conference host and co-sponsor, New Mexico State University, for their Extension staff's excellent work in helping to coordinate many aspects of the national conference.

Conference co-chair Edmund Gomez, executive director of New Mexico State University's Cooperative Extension Service's Rural Agricultural Improvement and Public Affairs Project, told the audience that "Nationally, we are losing about 50 small farms per days." Some 300,000 farms disappeared between 1978 and 1998 according to a national report. Most small-scale farmers earn only about $23,000 in net cash income annually, since production costs absorb more than 80 percent of gross sales.


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USDA's Assistant Secretary, Lou Gallegos, a native New Mexican, told participants that "they were in a land that has practiced small-scale agriculture for a long time" and that "small farms are family farms that denote something that acreage alone does not talk about-the heart and soul and mystical attachment to the land and its water that small farmers and ranchers have."

Gallegos noted that scarcity of good water is a national problem and spoke of the ancient irrigation systems New Mexico uses for distributing water to agricultural producers. He also said that "farming has always been a fundamental aspect of human existence and endured for centuries because small-scale farmers are the ultimate optimists."

Gallegos said that "small farms are the crucible of invention, a place that fosters independence and innovation." He added that "the small farm is where the spirit of America resides, where one learns self-reliance, develops a sense of community and belonging and the kind of character where neighbors help each other." He called small farmers the "true pioneers who have always kept the faith."

Gallegos added that the number of Hispanic farmers has doubled in the last 10 years while the number of African-American farmers has declined substantially during the same time span." We have to ask ourselves, "Why,?" he said.

Gallegos also told the audience that American agriculture is diversifying and immigrants coming into agriculture, such as the Hmong, are bringing their hopes and desires to invest in American farming. He added that "Native American nations are an emerging economy." Gallegos told conference participants that "it is up to them to help small farmers succeed and that we are here to build a groundswell of ideas and energy that will improve the lot of small farmers." He said thatÊ "USDA is the federal agency that should be and has been responsible for success in America."


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USDA/CSREES Administrator, Dr. Colien Hefferan, spoke about the importance of small family farms to agriculture, communities, and families. At the first day's plenary session, she told conference participants that CSREES and USDA strongly support the small farmers of this country. She defined the small farm from the National Commission on Small Farms recommended definition as "farms with less than $250,000 gross receipts annually on which day-to-day labor and management are provided by the farmer and/or farm family that owns the production or owns or leases the productive assets. She added that small farms account for 91% of all farms and for a large share of assets owned by farms (69%) including land (68%). She said that small farms play a major role in natural resource and environmental policy. Retirement farms alone accounted for 29% of the land in the Conservation Reserve Program (CRP) in 1998.

Elaborating on the point that small family farms are defined as those which have sales less than $250,000, she referenced the farm typology developed by the Economic Research Service (ERS) which categorizes farms into fairly homogenous groups for policy development and evaluation purposes. This typology is based on the occupation of operators and the sales class of farms. ERS defines the farm typology group as follows:

  1. Limited resource -any small farm with gross sales less than $100,000, farm assets less than $150,000 and total operator household income less than $20,000;

  2. Retirement - Small farms whose operators report that they are retired/ excludes limited resource farms operated by retired farmers;

  3. Residential/lifestyle--small farms whose operators report a major occupation other than farming, and

  4. Farming occupation farms--small farms whose operators report farming as their major occupation--low sales farms are sales less than $100,000 and high sales farms are sales between $100,000 and $249,000

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Dr. Hefferan also noted what small farms contribute to the fabric of rural America. They lead the way in new product development. For example, the fastest growing sectors of the agricultural market in the United States today are the organic and natural food markets. Small farms led the way in both areas and contribute most of the production.

Small farms enhance the quality of life for all Americans and protect natural resources for the entire nation. About one-third of the nation's 946 million acres of farm-land belongs to small farmers. Small farms play a dynamic and important role in maintaining and stabilizing rural communities. Small farmers are often major clients of the business community in rural areas. Their tax dollars are critical to the entire community.

Small farms also enhance the quality of life for urban communities. Small farms are often the only productive land use that can serve as a buffer between high density population centers and rural areas. They contribute significantly to the quality of the urban diet by providing fresh, high-quality, diverse produce through direct markets to urban residents. Small farms protect resources that serve all Americans. They provide open space for wildlife habitat, water recharge and the human need for contact with nature.

Colien Hefferan addressed the special and varied needs of small farmers. Small farms are highly varied in size, mix of animal and plant enterprises, gate receipts and gender, and cultural background of the farm operator. Small farms produce an enormous range of products and many of them are products for which the existing research base is not well developed. Organic production provides one example. Relatively little research-based information is available for organic producers. USDA agencies are funding projects dealing with organic agriculture. CSREES' Initiative for Future Agriculture and Food Systems and the Organic Transition Program under Section 406 are great examples where USDA funds are supporting organic agriculture.

Small farms are not unsuccessful large farms. Small farmers are resourceful entrepreneurs who produce valuable agricultural products using more limited fiscal, human, and land resources than their larger scale neighbors. They have special research, education and extension needs because they have fewer resources available to them than larger farms.

Small farms differ widely from state to state and even within the same state. Small farmers include many different cultural and social groups. For example, language can be a barrier for some and these groups need information available to them in their own languages. Some small farmers have limited educational backgrounds. They also have special information needs. Education and Extension programs must address these multiple groups of clients.


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Dr. Hefferan spoke about CSREES' long record of support for small farms but recognized the need to play a role in shaping future policies that may impact small farms, including market access, biotechnology, and organic agriculture. She made the following points:

  • CSREES/Economic and Community Systems' Small Farm Program responds to small farm needs through a full-time National Program Leader for Small Farms, Specialist, and part-time assistant who closely partner with a small farm program coordinator network in the Land-Grant University System, community-based organizations, USDA agency and other stakeholders. Ongoing program efforts include a Small Farm Digest Newsletter; Small Farm Hotline; representation in USDA Small Farm Quarterly Meetings, the USDA Small Farm Working Group, and at key national and regional small farm meetings nationwide; and key sponsorship or leadership of 3 national and 4 regional small farm conferences and workshops. CSREES is the lead agency in organizing this National Small Farm Conference. Although not legislatively mandated, since 1976 approximately $2.0M is disbursed annually through Smith Lever 3b/c formula funds and 1890 Program funds to 1862 and 1890 land-grant colleges and universities to work with small farmers. A $20,000 FY 2000 innovation grant allowed the identification of 4 small farm regional programs to enhance coordination and easier access to CSREES small farm programs

  • CSREES National Research Initiative is a basic research, fundamental science program. Some research project outcomes have the potential to benefit small farms although NRI has no legislative mandate to fund small farms. The 1997 comment attributed to Rominger was: "We will try to have as a goal $5 M for small farms in NRI." CSREES awarded $28.86 M among 20 projects in FY 2000 and $57.1 M among 44 projects addressing regional small farm issues across the Nation within the NRI's Initiative for Future Agriculture and Food Systems. NRI's Agricultural Systems competitive grant program awarded $3.3 M for 27 small farms relevance projects in FY 1998 and $6.3 M for 35 projects in FY 1999.

  • CSREES Community Food Projects competitive grant program awarded $5.2 M from FY 1996-2001 for 45 low-income, African- American, Asian-Pacific, Hispanic, and migrant small farm specific projects benefitting community food banks, community supported agriculture, farmer cooperatives, farmers markets, school lunch and elderly meal programs, and emergency food networks across the Nation.

  • CSREES Small Business Innovation Research (SBIR) Competitive Grant Program awarded $12.8M for 55 Phase II projects from FY 1997-2000 to for-profit companies to commercialize technology that may be of potential benefit to small farmers.

  • USDA-CSREES/Economic and Community Systems and the National Endowment for Financial Education co-funded a $15,000 Innovation Grant in FY 2001 to research retirement and succession plans of farm families, develop a "Farm Family Retirement Estimator" educational tool and module that can be delivered via Internet or workshop to farmers and will convene a Financial Security in Later Life conference scheduled for March 2002.

  • CSREES' Natural Resources and Environment Unit administers the Renewable Resources Extension Act which since 1982 has targeted 60% of its appropriation -- currently $4M -- toward Extension projects for small private, non-industrial woodlot and rangeland owners. In addition, approximately 25% of the Nation's federally supported $30 M forestry/range outreach program contributes to outreach projects in every state which benefit small private forest or rangeland owners.

  • CSREES/Science and Education Resources Development's Tribal Colleges Education Equity Grants Program awarded $203,452 during FY 1998-2001 to Ft. Berthold Community College to re-introduce native food sources to help reduce diabetes among the Hidatsa, Mandan and Arikira tribes.

  • CSREES National Integrated Water Quality Section 406 Competitive Grants Program awarded $801,000 to 5 universities in FY 2000 and $878,500 in FY 2001 to do integrated research/Extension outreach projects.

  • CSREES SARE program funded 46 farmer, professional development or research and extension grants from 1995-2001 totaling $2.47 M. SARE also funded 4 major conferences during 1999-2001 targeting small farmers with marketing and production practices to help their operations stay profitable, and publications, TIP Sheets and a video Farm To Market: A Journey of Change and Independence relating to sustainable agriculture and alternative marketing practices.

  • CSREES Fund for Rural America supported 4 projects totaling $4 M from FY 1998-1999 and 7 project during FY 2001 totaling $3.6 M which were helpful to small farm efforts.

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Secretary of Agriculture, Ann Veneman has delegated the Authority for the 2501 grant program for helping disadvantaged farmers to CSREES. We will be working closely with USDA agencies and our land grant university partners to encourage and assist disadvantaged farmers and ranchers.

Dr. Hefferan summarized other issues that CSREES will need to handle such as:

  1. Globalization ---How are small farmers supposed to compete in the new global market? To what degree should we focus on direct markets and local markets versus global markets for small farms? Global competitiveness should stimulate new lines of research and new extension program priorities. The need to be more competitive on a global basis could lead us to focus on value-added products, new uses for agricultural commodities and a systems approach to our research and extension programs. This also entails focusing on issues rather than disciplines, and in looking at the farm unit as a food, feed and fiber production system, rather than as an isolated set of production issues.

  2. Biotechnology ---Many critics of biotechnology argue that the application of this technology is harmful to small farms because (a) the products are developed and owned by large corporate interests and are tied together in packages (e.g., buy roundup-ready soybeans and buy roundup) and (b) the technologies themselves do not address the problems that are most important to small farmers, and ©) the technologies are expensive. How can biotech benefit small farmers? Given the research priorities of large corporate interests, what should be the focus of biotech research in USDA/Land Grant system to benefit small farmers?

  3. National Organics Rule ---The rule says that certifying agencies can no longer provide production recommendations to farmers. E.g., if you certify you can't also tell a farmer "use this product." This means that the demand for information from the USDA/Land Grant system will increase enormously. Do we have the research data we need to provide this information? Are our extension faculty knowledgeable enough about organic production to deliver this information to farmers?

  4. Declining Resource Base ---Research and extension budgets have not grown significantly at the federal level and many states are experiencing very serious cutbacks. Yet the small farm audience is very large and growing. How can USDA/Land Grant meet this demand for services and information in an era of reduced resources?

  5. Research and Extension ---with diminishing resources within the land grant system, collaboration is becoming very important and significant if we have to accomplish more with limited resources; increase research and education programs to assist families and communities transition to new forms of agriculture and develop alternative enterprises.

She ended her presentation by discussing the role of USDA and USDA's land grant partners in working with small farmers, stating:

The ultimate role of USDA-land-grant partnership is to assist small farmers understand where their farm operations are relative to the potential of their resource base. We can also assist small farmers to understand, evaluate, and select options as they face choices and change.


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Alma Hobb's Presentation - Welcome from USDA 3rd National Small Farm Conference - 2002
On behalf of USDA agencies and as the Deputy Administrator for Economic and Community Systems with CSREEES where the Small Farm Program is located, I am delighted to bring you greetings and warmly welcome you to the Third National Small Farm Conference.

USDA's mission is to enhance the quality of life for the American people by supporting production agriculture. We want to ensure a safe, affordable, nutritious, and accessible food supply, support sound development of rural communities, provide economic opportunities for farm and rural residents, and expand global markets to ensure that small farmers and ranchers have a stake in this effort.

USDA agencies are committed to ensuring that small farmers and ranchers not only survive, but thrive beyond the 2lst Century. Again, we welcome you to this conference and hope you will acquire some program information that will be applicable to working with small farmers and ranchers in your various regions and states.

New Mexico State University's Administration and staff have collaborated and worked hard together under the leadership of Edmund Gomez. For that, I sincerely thank New Mexico State University's Administration, faculty and staff for your wonderful collaboration and hard work in putting together this conference under the able leadership of Edmund Gomez.

I would like to also express appreciation to all the USDA agencies which contributed funding to make this conference happen. USDA wants to ensure that its programs meet the needs of small farmers and ranchers. I look forward to building a strong working relationship with other USDA agencies with small farm programs.

This kind of partnership that made this conference happen reflects the theme of this 3rd National Small Conference, "Building Partnerships to Strengthen Small Farms and Ranches."

Partnership can be rewarding. What we witness here today is a partnership unfolding. This conference is happening because of partnership by USDA and the Land Grant College and University Partners.

I encourage you to work together to overcome the many challenges facing small farmers and ranchers in today's economy. By gaining access to markets, establishing cooperatives, and placing more emphasis on diversification and alternative enterprises, as appropriate, small farmers can enhance their farm income.

You are here to increase your expertise in building partnerships. Learn as much as possible, and teach us what you know. Our job is to use education to overcome the challenges facing the small farmers and ranchers in today's economy. The more knowledgeable you are, the better the education.

Many small farmers want to enhance their farm income. You can help them by teaching them how to access markets, establish cooperatives, and explore diversification and alternative enterprises. Teach them how to take a calculated risk in supporting food and agricultural systems and rural communities.

The success of small farmers and ranchers is critical to American agriculture in terms of global food security and providing the highest quality and safest food in the world to our Nation's citizens and the world community. It is crucial to help our farmers and ranchers maintain a viable income so they can support their families and communities while maintaining a rural lifestyle that is the backbone of our country's cultural values and character.


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In a blunt address, Paul Gutierrez, executive director of USDA's Farm Service Agency in New Mexico, said the credo in agriculture today is, "get big, get specialized or get out." It is in the specialized sector where America's small farm operations can find a profitable niche, he said, especially if federal government can move toward reducing regulatory burdens and making the loan process more accessible for small farmers. In fact, small farms are at the forefront of new product development, accounting for most of the production in the organic and natural food markets, the fastest growing sectors of the agricultural market in the United States today.

Conference Overall
A diversity of topics from marketing to value-added processing were offered in workshop sessions. During Wednesday's opening session, several speakers said there is a need for small farmers to be more competitive on a global basis, which would lead Extension programs to focus on value-added products, new uses for agricultural commodities and a systems approach to research and Extension programs. The shift would mean focusing on issues rather than scientific disciplines and looking at the farm unit as a food, feed and fiber production system, rather than an isolated set of production issues.

A common theme running through workshop sessions was the idea that to succeed, small farmers need to grow specialty crops and market them directly to consumers. In plenary session presentations, top USDA officials said that "small-scale operators are entrepreneurs who fill a vital role in agriculture and lead the way in several specialty markets, despite limited resources."

In contrast to small farm enterprises, large-scale operations are super-sizing. For example, in 1980, four firms controlled 36 percent of beef slaughter nationally. By 1998, those same four firms controlled nearly 82% of production.

Exhibits and a poster session highlighted programs and services for small farmers. The exhibits included educational booths from USDA agencies, nongovernment agricultural programs, land-grant universities, private companies and cooperatives. Exhibitors came from about 25 states, including a booth on small farm pest management techniques by the University of Tennessee, on-farm food safety advice from the University of Hawaii and efforts to boost women's role in agriculture by the Women's Agricultural Network of Maine.

Also offered were ten farm tours showing the diversity of Southwestern farm and ranch-raised products, including Sandia Pueblo's buffalo operation, local wineries, and operations producing meat, fruits, vegetables, fiber and craft products.

The last day of the conference involved regional workshops among service providers in which partnership strategies were developed to maximize resources and outreach efforts in support of small farmers and ranchers

FEEDBACK: CSREES Small Farm Program Highlights is a dialogue resource tool primarily for State Small Farm Program Coordinators and others who work with the Nation's small farmers and ranchers. If you have questions, information to share, comments, or interest in subscribing or unsubscribing, send to solson@reeusda.gov.

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