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January 4, 2002

Use of computers on farms has grown from 38 percent of all farms to 55 percent since 1997, while Internet use has grown from 13 percent of all farm to 43 percent. In 2000, 24 percent of farmers used the Internet as a management tool in their operations, including $665 million in online buying and selling. Most farms appear to be using the Internet for only a portion of their overall farm business.

Internet use by farm businesses seems to be equally attractive to those specializing in crop or in livestock production, and the extent of use by different types and sizes of farms is generally not far from the average for all farm Internet users.
Source: Agricultural Outlook, USDA, Nov. 2001

Hired hand numbers down, wage rates up
There were 1.22 million hired workers on the nation's farms and ranches the week of Oct. 7-13, 2001, 2 percent fewer than a year ago.

There were 959,000 workers hired directly by farm operators. Agricultural service employees on farms and ranches made up the remaining 262,000 workers. Migrant workers accounted for 12.1 percent of the October hired workforce, compared with 11.3 percent in October 2000.

Farm operators paid their hired workers an average wage rate of $8.58 per hour during the October 2001 survey week, up 29 cents from a year earlier. Field workers received an average of $8.01 per hour, up 27 cents from last October. Livestock workers earned $8.36 per hour compared with $7.84 a year earlier. The field and livestock worker combined wage rate at $8.08 was up 32 cents from last year.
Source: USDA, NASS, Farm Labor, Nov. 2001

Government payments add to farmland value
Government commodity program payments are estimated to have added nearly $62 billion to U.S. farmland values, as farmland value depends largely on expected future earnings, including program payments.

From the perspective of many farm operators who own land, farmland value increases are favorable. Farmland value underlies the financial stability of many farm businesses, and farmland is often the principal source of collateral for farm loans. But for operators who pay more to buy land, appreciated values add to the fixed cost of production, largely related to higher financing costs and/or real estate taxes. Additionally, operators who lease farmland may pay higher rents that reflect their receipt of some of the government payments.

The added farmland value is particularly high in the Heartland region, where farm commodity payments have added $40 billion to the market value of cropland, nearly two-thirds of the effect nationwide. Much of the added value nationally, over 60 percent, accrues to non-operator landlords who lease out their land.
Source: Agricultural Outlook, USDA, November 2001