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Texas Agriculture Archive

April 1, 2005

Small farms numbers are large, sales small
The Economic Research Service has released a comprehensive report on the U.S. farm sector that shows small family farms (sales less than $250,000) accounted for 90 percent of the farms in the U.S., but only produced a modest shared (28 percent ) of farm output in 2001.

Large (sales of $250,000 to $499,999) and very large family farms (sales of $500,000 or more) accounted for only 7 percent of farms, but 58 percent of the value of production in 2001.

Non-family farms accounted for another 3 percent of farms and 14 percent of the value of production.

Small farms made higher proportionate contributions to the production of specific commodities, including oats, tobacco, hay, wheat, soybeans, corn and beef cattle. Small farms also held about 68 percent of all farm assets, including 60 percent of the land owned by farms. As custodians of the bulk of farm assets—including land—small farms have a large role in natural resource and environmental policy.

In 2001, three-fourths of commodity-related payments went to high-sales small farms ($100,000 to $250,000), large family farms, and very large family farms. Household income averaged $64,500 for farm operators in 2001, 11 percent higher than the average for all U.S. households.

Operators of residential/lifestyle farms, large family farms, and very large family farms had average incomes well above the average for all U.S. households. Operators in the limited-resource, retirement, and low-sales had average incomes that were below the national average.
Source: Farms.com; March 14, 2005

Wages up, hired hand numbers down
There were 749,000 hired workers on the nation's farms and ranches during the week of Jan. 9-15, 2005, down 12 percent from a year ago. Of these hired workers, 574,000 workers were hired directly by farm operators. Agricultural service employees on farms and ranches made up the remaining 175,000 workers.

Farm operators paid their hired workers an average wage of $9.81 per hour during the January 2005 reference week, up 40 cents from a year earlier. Field workers received an average of $8.73 per hour, up 34 cents from last January, while livestock workers earned $9.19 per hour compared with $8.83 a year earlier. The field and livestock worker combined wage rate, at $8.91 per hour, was up 36 cents from last year.

The number of hours worked averaged 36.8 hours for hired workers during the survey week, down 3 percent from a year ago.
Source: NASS; Farm Labor; Feb. 18, 2005

Navy adopts biodiesel use
The U.S. Navy will use a blend of 20 percent diesel fuel (B20) in all non-tactical diesel vehicles, starting June 1. The new policy is expected to increase use of B20, while reducing dependence on foreign oil sources.

The Navy is the largest user of diesel fuel in the world. The U.S. Army, Air Force and Marine Corps also use diesel fuel.
Source: AFBF Executive Newswatch; March 14, 2005

Titan Tire to buy Goodyear farm tires
Titan Tire Corp., a subsidiary of Titan International, Inc., Quincy, IL, has entered into an agreement to purchase The Goodyear Tire & Rubber Company's North American farm tire business.

The agreement calls for offering two brands in North America, Goodyear and Titan.
Source: Doane's Agricultural Report; Vol. 68, No. 9-1; March 4, 2005

Sign-up due for crop disaster program
Sign-up is underway for the Crop Disaster Program approved by Congress last fall.

Aid is available for producers who suffered crop losses greater than 35 percent in 2003 or 2004.

Disaster payments will be calculated using the same formula used for the 2000 disaster program. The value of the crop harvested and the value of the crop if there had been no loss will be based on the higher of the APH price election or the season average price reported by USDA.

The payment rate will be 65 percent of the established price for insured crops and 60 percent for uninsured crops. No closing date for the program has been announced.

Eligible producers can also sign up for the Livestock Assistance Program. The program provides relief to livestock producers who suffered grazing losses in 2003 and 2004 due to drought or other severe weather.
Source: Doane's Agriculture Report, Vol. 68, No. 11-1, March 18, 2005

Survey: Consumers will pay more for safe meat
A Food Safety Consortium survey has found that most consumers are willing to pay a higher price for irradiated or steam pasteurized meat.

About 55 percent of the 715 respondents said they would pay more for treated meat and 80 percent said they would choose treated meat over untreated meat at the same price.

The survey assumed an untreated price of $1.69 per pound and that a treated product would cost up to 40 cents more.
Source: AFBF Executive Newswatch; March 16, 2005