Farm Characteristics of Contract Specialty Grain Producers
2006
Edleman, P.R.
This study examines the farmer and farm operations characteristics of producers growing specialty corn and soybeans under contract. By identifying the class of farmers participating in value-added grain production, a better assessment of how and where contract farming is penetrating the grain sector can be made. If family farms are to counteract this growing agricultural industrialization, they must be willing to utilize sustainable agricultural practices as an alterative means to achieve growth and sustainability. Utilizing two case studies, one in Iowa and one in Nebraska, 114 contract growers were surveyed. The findings were compared with the general farm population in Iowa and Nebraska and to the general farm population in those counties in which the majority of contract growers in the survey reside. The survey results reveal that contract growers farm more land, are younger in age, are more educated, rely more heavily on hired labor, and are less likely to work off the farming operation than farmers in the general farm population. Many of the contract grower operations also possess three characteristics which make them attractive to contracting firms: access to large transportation equipment such as semis that can haul grain long distances, segmented storage to separate specialty and commodity grains, and irrigation to reduce production risks.
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