Farmers as Entrepreneur’s Courage

Risk takers

Inventors

Farmer Inventory

• 2.2 millions farms in US – 97% family owned and operated – 2% of population

• Gross farm income nationally @ $400 billion

• 21 million workers produce, process, sell Ag products in US – 15% of the work force

• $115 billion in US Ag exports annually

- 1 in 3 acres planted for export

- 31% of gross farm income due to exports

- 23% of raw Ag products are exported

• Farmers receive 16 cents of each food dollar

- in 1980 31 cents

Trend in Agriculture • Produce more with less • 1950 – 2.47 billion people in world • 2000 – 6.06 billion people • 2050 – 7.87-9.32 billion projection • 1961 – 1.601 billion acres (World’s

farmland) • 2001 – 1.670 billion acres (+69 million

acres) • 1997 (42.2%) – 2007 (40.8%) – lost 22

million acres of farmland in U.S.

To feed the 2050 population we will have to produce 100% more food!!!

Kentucky Agriculture $6.548 billion

#1 Poultry $1.279 billion

#2 Cattle $1.045 billion

#3 Horses $955 million

#4 Soybeans $954 million

#5 Corn $897 million

#6 Tobacco $448 million

#7 Dairy $256 million #8 Wheat $235 million #9 Hay $142 million #10 Swine $133 million #11 Nursery, Vegetables,

other crops $176 million

Agriculture is producing more with less and with the most efficient use of resources ever in history. Greener and more sustainable with less of a carbon

footprint. The problem is no one knows.

Ag Economics

• 1. Risk management

- Crop insurance

- Contracting product

- Contract farming

• 2. Generational turnover

- average age farmer 62

- $5,000,000 limit at tax rate of 40%

Local Food

• Small farmers • Dollars stay local • Re-connects public to the

farm • Farmer Markets 160 in 110

counties • 27 USDA meat processing

plants up from 15 just 10 years ago

• New product development - Beef

• Value added processing - milk

Greenhouse

2 acre greenhouse – lettuce 22 days 2 semi loads a day (Ashland) 15 acre green house Lincoln Co Vertical Greenhouse west Louisville (Foodport) High tunnels Year round production

Agri-tourism

• Field day to the farm

• Educational opportunity for agriculture

• Wineries

• Bourbon trail - Breweries

• Livestock farms

• Trail rides

• Gardens and nurseries

• Orchards and mazes

• Road side markets

• Farm attractions

Dairy - 2200 -645

Produce 1 billion pounds of milk Process 2 billion pounds of milk Increase cheese production

New Crop - Canola, Chia, Goldenrods, Sumac, Hemp

• 3rd year of pilots

• 4,500 acres

• 24 processing companies

• Seed and fiber

• CBD oil

• Lotion, salve, feed, food

• Clothes, textiles, paper

• $2.4 M processing plant – contract 58 farmers/ 19 counties 2,400 acres

(Manure to organic fertilizer)

• Price of oil

• Price of chemical fertilizer

• Value of manure

• $150,000 per year (4,000 head barn)

• Poultry 175 tons year X $40 a ton = $7,000

• 1/3 cost of chemical fertilizer

• Natures most perfect fertilizer

Grain elevator - ethanol

4000 farmers 78 cents a bushel

More with less • Compared to 1950, farmers today produce:

• 176% more pork per sow with 44% fewer sows

• 81% more chicken per bird

• 333% more corn on 11% fewer acres

• 53% more eggs with 3% fewer hens

• 11 times more soybeans on 5 times fewer acres

• 69% more wheat on 6% fewer acres

• 63% more milk with 58% fewer cows

It’s amazing!!!

Remember…

• Today’s farmers are producing more, safer and higher quality products on less land than ever in history.

• Today’s agricultural production is environmentally friendly, green, totally sustainable with only a shadow of the carbon footprint as compared with the past.

• Today livestock are the most comfortable and cared for ever in history.

• The greatest thing is we are learning and improving everyday. It just going to get better.

Today Farmer Care

Warren Beeler

• Governor’s Office of Agricultural Policy

• kyagpolicy.com

• Office – 502-564-4627

• Cell – 270-991-3438

• Questions??