AG ECONOMICS CONFAB LOOKS AT INDUSTRIALIZATION OF AGRICULTURE

Each year the University of Missouri's Agricultural Economics Department sponsors an economic policy seminar dealing with current agricultural issues. This year's subject was "The Industrialization of Agriculture: Changes in Structure, Ownership and Control."

Speakers and reactor panels looked at all phases of Missouri's agriculture including livestock, poultry and row crops as well as who controls and produces them.

It was agreed that the poultry industry was the most integrated and thus could be defined as the most industrialized. Pork production was predicted to continue on the trend toward larger units, but Glen Grimes indicated that 35 percent of total pork production might be the maximum to be produced in large, integrated operations. Beef cattle production, while being concentrated in large feeding and slaughter operations, will still have beef calves being produced in relatively small-cow-calf operations. (The average cow herd size in the United States is 40 cows, while the top four beef packers kill 80 percent of the cattle in this country.)

Consistency of beef quality at the consumer retail level was one of the problems that cow-calf and feed-lot operators will have to address if beef is to regain its historic share of producer consumption. Pork products also have a consistency problem at the retail level.

Many participants agreed that we were probably in a post-industrialization period in row-crop agriculture with the advent of tractors and harvesting equipment such as cotton pickers in the 1950s being the point of real change in crop production.

It was pointed out by Dr. Jerry Nelson that germplasm of most of our row crops is closely controlled by the companies that develop the seed that farmers purchase. The closely protected patents on soybean seed are the most recent developments in this area. A concern raised in this discussion was that Japan and possibly other countries might not accept products from genetically engineered crops.

The ownership of Missouri farm land is changing in that 55 percent of the crops produced in our state are raised on rented land. Forty-three percent of the landlords are women, and of all landlords only 56 percent visit their farms, while only 39 percent have input into the operation of their land. The question raised was: Is the widening gulf between renters and landlords good for the country?

A heated discussion was held on whether industrialization was good or bad. Several points against further industrialization: (1) Degradation of public resources such as water and air. (2) The continued reduction of people who live on and work the land. (3) Larger corporate farms and fewer family farms. (4) the increase in social pressures as more people live and work in urban areas. A later speaker used ConAgra and Cargill as examples of large diversified corporations that are substituting management and capital for labor. ConAgra produces and sells diversified food products in 60 countries of the world. As a member of a reactor panel, Lanie Black (Charleston farmer) wisely pointed out that "corporate agriculture is not even. It's people that are evil."

Dr. Bruce Bullock says he believes we're actually in a "post-industrialization era in many facets of U.S. agriculture." He also stated that our food production system is globalized with 32 percent of the people fed by U.S. agriculture living outside of our country. Some segments of our existing agricultural system may become redundant since we are in a market-driven economy. This market-driven economy (even though subsidized to some degree in some countries) is a world-market economy.

It was also pointed out by several conference participants that we must produce what the consumer desires in quality and safety of the food products that eventually find their way to the retail grocery shelves.

Marty Strange the director of the Center for Rural Affairs of Walthill, Neb., said the citizens of Nebraska slowed agricultural industrialization down by passing an amendment to their state's constitution. This amendment prohibits non-family farm corporations from owning or operating farms/ranches in that state.

Further observations from the intensive day and a half discussions:

-- Well-managed family and corporate farms will continue to thrive.

-- We are in a global market place for many of our basic agricultural commodities.

-- There are profitable niche markets for certain food products.

-- We should produce for the consumers or else convince consumers that what we produce is what they desire.

-- We need to sell food and not just beef, pork and wheat.

-- Part-time farmers/ranchers have a place in the agricultural economy, but their operations should be profitable.

-- Farmers have to network instead of being so independent.

- Are we sacrificing our kids' futures with pollution or all kinds?

-- International and speciality marketing are both important to agriculture's future.

-- Some environmental regulations are important, but don't continue to legislate more burdens and costs to producers.

-- Where will the information come from to keep farmers and ranchers efficient and competitive?

Peter C. Myers Sr. of Sikeston is a former deputy secretary of agriculture and is currently president of Adopt A Farm Family of America Inc., a Christian outreach to farm and ranch families in the United States.