A farmer survey by University of Missouri agriculture professors that was sponsored by CoBank, a national cooperative bank, found that off-farm jobs and income were critical to farmers and ranchers.
The authors found a growing rural and urban connection in the necessity of outside income for farmers and ranchers, calling it “under appreciated.” And the connection often incorporates multiple counties as people commute back and forth to work.
RURAL COMMUNITIES INCREASINGLY DIVERSE
The study found that fewer people are needed on farms and ranches as agriculture becomes more productive. In 2019, the agriculture required just 6.5% of a nonmetro county’s population, whereas in 1970, it was 15%.
The study also found that services jobs, like retail, professional services, healthcare and restaurants, have been replacing agriculture and manufacturing jobs in rural counties for decades, growing to 57% of nonmetro jobs in 2019 from 40% in 1970.
Additionally, only 20% of nonmetro counties were economically specialized in farming, whereas 30% have diverse economies.
PRODUCERS DEPEND ON OFF-FARM JOBS
The survey found that 56% of farmers and ranchers had a main job off the farm in 2017, compared with 37% in 1974. And that 63% of younger operators (under age 35) had primary off-farm jobs in 2017.
Those having off-farm jobs in 2018 listed more reliable income and health care benefits as top reasons for doing double duty. About half of farm households have negative farm income in any given year, the survey found, so other income sources were critical for most as they pay down agricultural investment debts.
And debt-to-asset ratio analysis and other research showed that off-farm jobs reduce financial risks, especially important for younger farmers who face higher debt needs as they grow their business.
GROWING RURAL, URBAN CONNECTION
The survey found that the close ties between nonmetro and metro counties tells the story of how the nation’s rural and urban communities have grown economically closer over the last 50 years, as 65% of the rural US population, or 46 million people, live in counties adjacent to metro areas.
The increased commuting of nonmetro residents to metro areas was the primary reason for reclassifying “rural” counties as “urban” over the past decade.
The survey also found that farm-dependent counties had especially gained ground in connecting people across communities as off-farm jobs increased in importance.
From 1990 to 2010, farm-dependent counties had the largest percentage point increase (14%) in their share of high-commuting census tracts, indicating more residents were traveling farther for work.
And in 2002, 52% of farm-dependent county commuters left their home county for work. In 2018, 62% of farm-dependent county residents commuted outside of their county.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $142.00 to $145.01 per cwt, compared with last week’s range of $141.00 to $145.00 FOB dressed steers, and heifers went for $222.23 to $224.35 per cwt, versus $221.34 to $227.23.
The USDA choice cutout Tuesday was down $0.81 per cwt at $251.64 while select was up $1.34 at $227.23. The choice/select spread narrowed to $24.41 from $26.56 with 115 loads of fabricated product and 30 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $2.65 to $2.80 a bushel over the Dec futures and for southwest Kansas were steady at $1.10 over Dec, which settled at $6.92, up $0.13 3/4.
The CME Feeder Cattle Index for the seven days ended Friday was $178.20 per cwt up $0.28. This compares with Monday’s Sep contract settlement of $178.80, down $1.15.