1. Issues Facing Beginning Farmers and Ranchers July 9, 2007 Michael Duffy Director, Iowa State Beginning Farmer Center

2. Access to Land Resource Increasing land values limit ability to purchase

6. Access to Land Resource Increasing land values limit ability to purchase Increasing rents and changing rent options limit ability to access land

9. Access to Land Resource Increasing land values limit ability to purchase Increasing rents and changing rent options limit ability to access land Competition for land as existing farmers try to expand

11. Existing Farm Transition Possibilities Changing demographics of farmland owners

14. Existing Farm Transition Possibilities Changing demographics of farmland owners Retiring farmers planning or lack of planning

19. Farm Technology Tight margin farming that requires a large volume to generate an adequate income Preferential pricing for large volumes of commodities

23. Issues Facing Beginning Farmers and Ranchers Ineffective entry strategies Inability to acquire initial capital investment Identifying viable farm entry enterprises Obtaining appropriate financial, managerial, and production skills Effective risk management tools

24. Issues Facing Beginning Farmers and Ranchers Lack of supplemental employment opportunities Difficulties transitioning farm from one generation to the next –Lack of qualified help in formulating exit strategies –Unwilling to give up managerial responsibility and unwilling to transfer ownership of assets.

25. Income Opportunities Slow food/local food movements are opening options and alternatives for beginning farmers and ranchers. Farmer’s markets are providing new outlets and the opportunity to sell a story Food safety concerns Internet opening many new avenues Alternative production and crops - insurance - risk

26. Final Thoughts There are some significant issues facing beginning farmers and ranchers over the next few years. Some of these are structural and some are related to the current situation Beginning farmers and ranchers face a different situation than in the past but this adds a lot of options. Credit will be helpful but it will not guarantee success. The beginning farmer and rancher will have to work based on their goals and the resources available.