Iowa State University Beginning Farmer Center

BFC Programs FarmOn- a matching service for beginning and retiring farmers Ag Link Seminar- a special seminar for students returning to the farm and their families Individual consultations for beginning or retiring farmers Individual financial analysis of farm transfers

BFC Programs Resource information and research for farm succession planning International farm transfers research Farm Savvy resource manual Leadership for National Farm Transition Network

Ag Link Seminar Multiple generation farm families Strategic business planning Farm business transfer Communication Conflict resolution Goal setting

Strategies 1.Volume; farm with tight margins and use volume to generate the income - this is a very successful strategy for some people; has a lot of appeal to younger generation; problem is gaining control of the resources 2.Widen the margins; increase the value of the output and/or decrease the level of inputs - examples; contract commodities (high oil corn, low linec beans, non-GMO’s, etc) Use integrated management systems

Strategies 3.Look for alternatives to commodity production - examples; fruits, vegetables, moving closer to final consumer 4.Obtain additional sources of income to supplement the farm income - this can be off or on-farm 5.Wait; work and build up capital, then start

BFC Contact Information Phone Web address: Mike Duffy –478 Heady Hall

Bioeconomy and Ethanol

Robert Brown, Director, ISU Bioeconomy Program Dr. Robert Wisner, ISU, Extension Economist, Grain Marketing Specialist

Goal of the Bioeconomy The bioeconomy is nothing less than a revolution in the way society will obtain vital sources of carbon and energy for growth and well being, in the process sweeping away the petroleum economy. Agriculture will make this transformation possible.

Motivation for Returning to a Bioeconomy Environmental quality –Local and regional (smog, acid rain, waste disposal) –Global climate change Excess agricultural production –Many countries are becoming self sufficient in food production National security –Reduced reliance on foreign cartels Rural development –Rural economies are not thriving in many parts of the world Courtesy USDA NRCS

* * * * * * * * * 62 Planned + current in Iowa 11 Just across the borders * * * *

Conclusion Major changes are occurring in land ownership; ramifications for who will farm the land, how it will be farmed, expectations from the land Ethanol and the bioeconomy are going to have a tremendous impact on Iowa agriculture for many years to come What will it mean to have corn and other agricultural outputs tied to energy prices

Conclusions There will be a period of uncertainty as the economy adjusts to the new reality; livestock and exports are two sectors that will face adjustments Farm bill debate will be occurring at a time when commodity prices are high; this may end the typical programs but help increase environmental programs

Conclusions Will the food versus fuel debate take on more meaning over time; have we overcome ‘the curse of agricultural abundance’ The final outcome won’t be known for several years as adjustments are made and as new techniques and technologies are developed There will be winners and losers

Conclusions There is no such thing as a free lunch We have a tremendous opportunity but will our approach be guided by the philosophies of the past Time will tell the final impacts