APB agenda 081804 - Laserfiche WebLink

Browse Search

,j lV Strategies to Revitalize Rural America Look for Markets and Fight for Standards that Fit the Strengths of Family Farms and Ranches — The greatest strength of family farms and ranches is the presence in the field and barn of a motivated, experi- enced, and skilled worker -owner who watches and understands what is happening, exercises judgment, and make decisions. Corporate farms take markets away from family farms when the labor requirements become sufficiently rou- tine and unskilled to be done by low -wage laborers. Hog production used to be the small farmer's niche. It was only when confinement and antibiotics provided a controlled and more predictable environment for hog production that corporations could raise hogs effectively with wage labor. Family farmers and ranchers will find their greatest opportunity in markets that are difficult for corporate agriculture to serve. It is critical to work for a standard for high -value markets that fits the strengths of family farms. For example, family farmers will gain the advantage if markets for organic and humanely raised natu- ral milk and pork preclude conventional total confinement systems. A big corporate farm gained a foothold for its pork in some natural markets by simply stating that its hogs had access to sunshine and fresh air. Confinement buildings with curtains for ventilation provide that. A clear, strong, and meaningful standard for "natural" pork would help family farmers capture that market and ensure more significant and more lasting premiums. It would be especially helpful to have a clear and strong standard for family farm and ranch produced food — to make that term a meaningful product standard that gives small and mid -size farms an edge in the market. Not all niche markets are a good fit for small and mid -size farms. There has been much talk about producing crops that are genetically engineered to produce pharmaceuticals. The primary management challenge in raising them appears to be instituting a regulatory regime to prevent pollen and seed from escaping into other fields. Whether pharmaceutical crops offer opportunities to small and mid -size farms may depend on the nature of .those requirements. In general, larger businesses are more adept at meeting regulatory requirements because they can spread the costs over many more units of production. Banding Together to Market and Bargain — It is to the advantage of family farmers and ranchers to band together in cooperatives or other organizations to collectively market and bargain in niche markets. Only together can small and mid -size producers guarantee food processors or retailers the volume they need when they need it. Most food companies don't have systems to find and do business with many different producers who meet the standards for their niche market. By banding together as a single source that can offer the supplies and quality food companies need, family farmers and ranchers are more likely to get their business. And they are in a far stronger position to negotiate a good price. Banding together may also enable family farmers and ranchers to influence the standards for premium mar- kets. If a family farm cooperative offers natural livestock to a retail or food company and that livestock also Page 8