Lothar Baumann and Grant Hilbert are both farmers, but that’s where their similarities end. Lothar Baumann– 65 years old and white-haired, with skin weather-worn from decades in the sun- represents the average farmer in the US. He began farming as a teenager, spending his afternoon picking fruit. For Lothar, farming is “where life begins.” Nowhere else can you be as close to the “pulse and heartbeat of life.”
On the other hand, Grant Hilbert is part of the new generation of farming. For him, farming is “chasing the dream.” Hilbert grew up in urban Iowa wanting to follow in his grandparent’s footsteps by becoming a farmer. He started streaming on YouTube as he played the video game Farm Simulator. Hilbert grew his channel while he got his degree in agribusiness from Iowa State, eventually earning enough money to buy his first farm.
Making a dream of farming a reality is hard work, especially for young farmers. In the Midwest, focused policies help make the difficult task of starting a farm a little more affordable. As farmers like Baumann begin to retire, it’s important for young, passionate farmers to take their place.
How desirable is farming for younger generations?
Younger people are more interested in farming than ever. 30% of all farmers are beginning farmers—meaning that they have been farming for 10 years or less. Student membership in Future Farmers of America (FFA) is at an all time high, recently exceeding 1 million members, as young people’s desire to farm grows. With many farmers nearing retirement, millions of farming acreage is expected to become available, but only to those that can afford it.
Why are so many young people interested in farming?
Increasing numbers of young people are drawn to farming. According to the United States Census Bureau, in the aftermath of the COVID-19 pandemic, more young people are seeking out exurban communities, where they are driven to farming by a desire to reconnect with nature and gain food sovereignty by growing their food. On the other hand, young family farmers, who grew up helping with their parents and grandparent’s farming business, hope to continue the legacy. Farming is all they know.
Why is it important to get younger farmers on the land?
Young farmers are the future of sustainable farming practices. 86% of young farmers identify their farming practices as regenerative, committing to fostering healthy soil and protecting ecosystems. 83% identify conservation and regenerative practices as a primary purpose of their farm’s existence.
Farming corporations care less about the environment. They are less willing to experiment with new, more sustainable farming methods, favoring a business-as-usual approach. Large corporations and investors that buy land are concerned with making money in order to improve their bottom line and make investors happy. Farmers, such as Lothar, view themselves as stewards of their land: their goal is to future proof for continued use.
Farming is a tough industry to break into. But, why?
According to the 2022 National Young Farmer Survey, buying land is the biggest challenge facing young farmers. In the United States, on average, an acre of farmland costs $5,570. In the Midwest, this jumps as high as $9,800. Still, this is just an average. Last year, a 115 acre farm in Missouri broke records when it sold for $35,000 per acre. Grant Hilbert’s central Iowa farms, totaling 250 acres (of which, not all the land is farmable), cost him $1.8 million.
Land is just the first expense new farmers face. Machinery is expensive- a single, new row-crop tractor costs nearly $500,000. As farming equipment has become more specialized, each step in the farming process requires a different machine- from planting, to fertilizing, to razing. Equipment is so expensive that when Hilbert’s younger brother, Spencer, bought land of his own, he drove Hilibert’s tractor 90 miles down the highway to use at his own farm rather than buy his own.
There is also the cost of failing. New farmers cannot afford to have a bad year as they start out, as they have few funds to fall back on. In contrast, family farmers have greater support and less surprises. Without startup costs, such as land and machinery, family farmers take over an operational and familiar farming operation. As farming becomes more and more money-intensive, many new farmers are priced out from the beginning.
What programs support young farmers?
Federal and state governments want agriculture to continue thriving. However, new financial programs to help incoming young farmers have taken vastly different approaches. Nationally, the USDA Farm Service Agency targets a portion of loan funding to beginning farmers, including down payment assistance. However, these funding options are limited and untargeted.
In Midwest states, the opposite is true: aggressive New Farmer Programs have effectively lowered the median farmer age by helping beginning farmers run a successful business. In Iowa, for example, the Iowa Finance Authority opened a specialty branch called the Iowa Agricultural Development Division, which runs the Beginning Farmer Loan Program (BFLP) and the Beginning Farmer Tax Credit Program (BFTC). The former loans money for new farmers to buy agricultural property, machinery, breeding livestock, or farm improvements. These loans are exempt from federal and state taxes, allowing lenders to give farmers interest rates that are 25% lower than usual. This is huge. Without this down payment assistance, Grant would have likely not been able to afford his farmland. The latter gives tax credit incentives to landowners when they lease land or other physical property to beginning farmers. The tax credit ranges from 17 to 75% depending on the type of lease. Both programs support young farmers while they enter the farming business.
Looking forward..
As farmers begin to turn their land over to new hands, more young farmers have opportunities to buy farmland of their own. Midwest Beginning Farmer programs try to level the playing field, allowing new farmers to have the opportunity to start their own operations. Farming is a difficult industry to break into- Midwest new farmer policies make it more manageable. As farmers like Baumann start to retire, they can be sure that their land will be cared for and cultivated by incoming farmers who share their love for farming.