Commmunity Effectsof Family Farms vs Industrial Agriculture Operations

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STUDIES CONSIDER COMMUNITY EFFECTS OF FAMILY-SIZED VERSUS INDUSTRIALIZED FARMING OPERATIONS

By Daryll E. Ray
Director of University of Tennessee's Agricultural Policy Analysis Center (APAC)
January 26, 2007

The goal of saving the family farm has been used by advocates as well as critics of farm commodity policy. Advocates argue that family-sized farms will be adversely affected if farm commodity policies are severely reduced or eliminated. The assumption, often unstated, of those who argue for policies to support family-size farming operations is that communities with a large number of mid-range family farms are more vibrant than comparable communities dominated by a small number of large industrialized farming operations.

Critics, on the other hand, argue that the number of farms has dropped dramatically since the inception of farm commodity programs in the 1930s. They note that the percentage of farmers currently in the US is less than two percent and farm programs have done little to stem the tide. Some even argue that farm programs have helped finance the consolidation of farms and the trend towards larger sized operations.

In dealing with this type of discussion, it is important to understand that there are at least two different issues at stake and it is necessary to separate them from one another. They need to be dealt with one at a time.

The first issue is determine whether or not the communities surrounding family-sized farming operations are more vibrant than comparable communities dominated by a small number of large industrialized farms.

The second question is whether or not farm policies, particularly commodity policies, are supportive of family-sized farming operations. Who are the beneficiaries of a given set of farm policies (e.g. family-farming operations, industrialized farming operations, integrated livestock producers, agribusiness in general)?
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