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FARMING REMAINS A DIFFICULT FINANCIAL PROPOSITION IN WEST VIRGINIA
Although some news reports might lead the public to believe that America’s farmers are currently reaping a financial bonanza, West Virginia Commissioner of Agriculture Gus R. Douglass says that is hardly the case.
“Between rising grocery prices, the debate over federal farm subsidies and the rising price of corn due to increased ethanol production, many people might think that farmers everywhere are in great financial shape,” said Commissioner Douglass.
“That is really not the case for the vast majority of farmers in West Virginia and throughout the country. Most farm families rely on off-farm income to make ends meet, and are powerless to affect the prices they receive for the food they produce.”
U.S. Department of Agriculture (USDA) research shows that farmers continue to receive a decreasing share of consumer dollars, despite what consumers may be spending in the grocery store.
Since 1954, the percentage of consumer dollars received by farmers has fallen from 37 percent to 20 percent in 2004. During roughly the same time frame, the percentage of American’s disposable income spent on food has fallen from 18 percent to 10 percent.
Put another way, today’s farmer receives 90 cents on an $8 steak, 11 cents on a $2.50 loaf of bread, eight cents on a $3.50 bag of potato chips, and another eight cents on a $5 box of cereal.
Plus, a breakdown of total farm income shows that, in most cases, off-farm income accounts for half or more of the total farm income.
When broken down by commodity, beef cattle operations alarmingly show no on-farm income, meaning those producers are merely breaking even. The general livestock category actually shows negative on-farm income, meaning those producers would be out of business if not for off-farm income.
“Consumers must realize that food does not come free from the farm. Production costs continue to rise, while farmer share continues to drop,” said Commissioner Douglass. “I invite anyone who thinks farming has become a cash machine to take $150, bury it in the yard, and hope the weather cooperates, because that’s what corn farmers do for every acre they plant.”
This past summer, farmers’ prayers were not answered. Drought destroyed much of the state’s corn and hay crop, taking this winter’s expected livestock feed with it.
Consumers presently are enjoying a generous supply of beef due to stressed selling, but will feel the impact of the drought in coming years. However, farmers will bear the brunt of the loss, due to lost opportunities and expenses associated with rebuilding their inventories, Commissioner Douglass said.
The West Virginia Department of Agriculture protects plant, animal and human health through a variety of scientific, regulatory and consumer protection programs, as mandated by state law. The Commissioner of Agriculture is one of six statewide elected officials in West Virginia. Currently, Commissioner Gus R. Douglass is the longest-serving agriculture commissioner in the nation. For more information, visit www.wvagriculture.org.
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