Traditional farms missing on funds

Study: Small farms miss out on government research dollars

WASHINGTON (AP)--Small- and medium-sized farms are missing out on the largest share of federal research and grant dollars for agriculture, according to a study released Oct. 10.

Of $500 million spent on four U.S. Department of Agriculture research and grant programs, only about 5 percent went to farmers with small- or medium-sized operations or beginning farmers, the Nebraska-based Center for Rural Affairs said.

Many projects that got funding "were essentially research and development initiatives for large food companies," the report concluded. Analysts looked at funding in 2001 and 2002.

The nonprofit group argues the programs are crucial to traditional, independent family farms and ranches, which are disappearing across America.

In Iowa alone, the number of mid-sized farms, those with sales between $100,000 and $499,999, dropped 19 percent from 1997 to 2002, the center said. Nationwide, the average age of farmers has seen an annual rise of one year since 1997.

"Given the demographics of agriculture in America--the inability of major USDA research and grant programs to address the topic of beginning farmers and ranchers is disappointing," said the center's Kim Leval, an author of the report.

The group called on the government to target family farmers and rural communities in awarding federal money and said each program should set aside money for beginning farmers and ranchers.

The programs are the Rural Business Enterprise Grant program, the National Research Initiative, the Initiative for Future Agriculture and Food Systems and the Value-Added Producer Grant Program.

Funding for ethanol and other biofuels is causing tension within the value-added program, the report said.

"Whatever benefits flow from ethanol and biofuel production will not generally flow to small- and medium-sized farmers as large-scale energy production will be dependent on large-scale grain production and will increasingly become corporatized," the report said.

The Lyons, Neb.-based center is funded by private foundations, national church programs, government sources and individual donations.

Date: 10/26/06

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