Perceptions of Large-Scale Cornbelt Farmers: Implications for Extension

Reduction or lack of increase in public funding is causing Extension systems in many states to consider program restructuring. Extension administrators and personnel are examining program content to ensure that critical needs are being met. Participation of those using Extension Services in this process is important to ensure that their interests are being considered. Representative individuals may serve on planning or advisory committees and informal methods can be used to solicit views of knowledgeable individuals. These methods are useful for obtaining subjective viewpoints; however, they can be misleading because they are not broadly based and may not consider perspectives of the larger potential audience.

This article reports the results of a survey of the farm management problems and opportunities of large-scale, cash-grain farmers in the mid-west who participated in an Extension workshop. These farmers are a current Extension audience who provide traditional political support for Extension, and their perceptions can be useful in planning future Extension programs.

Farmers who attended the three-day 1991 Top Farmer Crop Workshop at Purdue University were sent a questionnaire to complete before the workshop. This workshop has been held annually since 1968 and participants paid a $160 registration fee. A total of 80 useable questionnaires were received from 102 participants. Eight states were represented in the sample, with 48% coming from Indiana, 25% from Illinois, 14% from Ohio, and 6% from Iowa.

The questionnaire focused on a number of management topics, but this article focuses on three open-ended questions contained in the last part of the questionnaire.

1. What factors might lead to a different direction for your farm operation in the next 10 years?

2. As you look ahead over the next 10 years, what do you anticipate will be your most difficult management problems?

3. As you look ahead over the next 10 years, what do you anticipate will be your most significant management opportunities?

Responses to these questions were classified and tabulated into the broad categories reported in this article. General results of the study are summarized in Ortmann, Patrick, Musser, and Doster (1992).

The average farm operated by the respondents was 1,820 acres (691 acres owned)--more than four times the 433 acres operated by the average North Central farm (Hepp & Edwards, 1991). Individual and family ownership arrangements accounted for over 90% of the sample. Corn and soybeans accounted for 74% of gross farm sales. All had gross farm sales of over $100,000, with 35% exceeding $500,000 in 1990. In comparison, only about 30% of Indiana farms had gross farm sales exceeding $100,000 in 1990 (Barnard, McNamara & Falck, 1991). Respondents averaged 39.7 years of age, younger than the average 52 years of U.S. farmers (U.S. Department of Commerce, 1987). The mean 14.9 years of formal education was also higher than the educational level of the average farmer. Over 76% considered themselves above average in management skills. Most of the respondents were in the $250,000-$499,999 range of net worth, with 63% having a net worth of less than $500,000.

Sixty-six farmers (82.5%) responded to the question on factors that might lead to a different direction for their farm operations in the next 10 years (Table 1). About 30% identified changing market conditions as the most important factor. Closely related to this factor was changing enterprise profitability and effects of technology leading to different enterprise mixes on the farm. Jointly, these two factors accounted for nearly 60% of responses. Changing family relationships (24%) and labor changes (18%), as well as changes in financial circumstances (14%) were also factors expected to significantly influence the direction of business. Adverse weather, government programs, and environmental issues were also seen as important by some farmers.

The three most important factors are all related to traditional Extension farm management programs. The greater perception of importance of markets probably reflects the joint effects of internationalization of agricultural commodity markets and declining support from federal commodity programs. Opportunities for increasing emphasis on Extension marketing programs are suggested to supplement the important production and financial emphasis of the past.

Seventy-two farmers (90%) gave responses to the question on the most difficult management problems over the next 10 years (Table 2). Issues regarding the hiring, training, and retention of quality employees were of concern to nearly one-third of respondents. Problems regarding finance, including obtaining capital, reducing debt, maintaining profitability/cash flow, and where to invest were considered as important by 29% of the respondents. Environmental issues were prominent (22%), as were marketing problems (17%). Transfer of the business to children and partnership issues (14%) and land expansion (11%) were the most important other responses.

Some differences are apparent in these responses compared to those in Table 1. The prominence of labor-management problems validates its importance as a factor in changing farms as asked in question 1. In contrast, transfer of business was actually listed as a problem by fewer respondents than the number who saw it as changing their business. Marketing was also seen as less of a problem than as something that would change their business. However, finance and environmental issues were much larger as management problems than as factors changing the business.

Sixty-three farmers (79%) responded to the question about the most important management opportunities over the next 10 years (Table 3). Nearly one-half of the respondents indicated that expanding their business would be a vital management opportunity. About 29% mentioned lowering unit costs (increasing efficiency or productivity) by using new technologies and no-till operations. Taken together, these two broad management opportunities were mentioned by 76% of the respondents. Marketing opportunities were also regarded as important by 35% of the responding farmers, hiring and retaining quality labor by about 10%, and financial progress/management by 8%. In a sense, all the indicated management opportunities combine to make farmers more productive and competitive in the future farming environment.

These responses exhibit some differences in relation to previous questions. Expansion of the business was given much greater importance than in previous questions. Lowering costs of production was related to a factor changing the business--new technology. In contrast, marketing was a significant response on all three questions. Finally, labor, finance, and the environment were much less prominent than in the previous questions.

While responses to the three questions had similarities, there were some differences. Overall, the responses indicated that traditional Extension programs for commercial farmers related to new technologies, marketing, and business expansion are consistent with these farmers' perceptions. Marketing was especially prominent in all responses. Finance, family/business relationships, and other traditional areas rated high as management problems. An issue of less traditional Extension emphasis is labor management. Environmental issues also seem to be of more importance and would provide opportunities for expanded Extension efforts. The relative importance of human relationships with family members and employees indicates that these large-scale farmers have much more complex personnel problems than are commonly perceived for the single family farming unit than in the past. An opportunity apparently exists for partnerships between Extension personnel in farm management and those in other program areas with expertise in human relationships.

Barnard, F. L., McNamara, K. T., & Falck, J. (1991). Results of the Indiana farm finance survey for 1991 (Purdue Agricultural Economics Report, November). West Lafayette, IN: Purdue University.

Hepp, R. E., & Edwards, W. E. (1991). Small, medium and large farms in the north central region: A statistical profile. In the Proceedings of the North Central Extension Workshop. Columbia: University of Missouri, Extension Division.

Ortmann, G. F., Patrick, G. F., Musser, W. N., & Doster, D. H. (1992). Information sources, computer use, and risk management: Evidence from leading commercial cornbelt farmers (Purdue Agricultural Experiment Station Bulletin 688). West Lafayette, IN: Purdue University.

United States Department of Commerce. (1987). 1987 Census of Agriculture. Washington, DC: Bureau of the Census.

Journal Paper Number 14424, Office of Agricultural Programs, Purdue University. Professor Musser was formerly Professor of Agricultural Economics at The Pennsylvania State University, State College. Both Professors Musser and Ortmann were formerly visiting professors at Purdue University. Professor Ortmann gratefully acknowledges financial support from BP Southern Africa and the Centre for Science Development. Views of the authors do not necessarily reflect those of these organizations.