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Agricultural Production

Nature of the Industry  |  Working Conditions  |  Employment  |  Occupations in the Industry
Training and Advancement  Job Outlook  |  Earnings

Significant Points

  • Small family farms constitute 91 percent of all farms and own about two-thirds of all farmland, but large family and commercial farms account over half of the total value of agricultural production.
  • Self-employed workers—mostly farmers—account for more than half of the industry’s workforce.
  • Employment in agricultural production is projected to decline, especially among self-employed farmers and ranchers.

Nature of the Industry

Agricultural production—consisting of farming and ranching, including aquaculture—has long been a mainstay of the Nation’s economy, successfully feeding and clothing the domestic population as well as exporting agricultural goods around the world. Once a labor intensive industry, providing jobs for at least 12 percent of the workforce as late as 1950, both agricultural employment and the number of farms have dropped significantly in recent decades because of mechanization and other technological improvements and wide fluctuations in farm incomes due to unstable agricultural commodity prices. Although approximately one-third the number of farms exists today as compared with 50 years ago, output has more than doubled, exports of agricultural goods continue to contribute positively to the foreign trade balance, and agricultural production remains one of the Nation’s top industries in terms of total employment.

Thanks to generally temperate climates, rich soil, and a variety of growing conditions, the agricultural sector produces an abundance and wide selection of products. The industry is roughly divided into two major segments: livestock production, including animal specialties; and crop production. Livestock production includes establishments that raise livestock, such as beef cattle, sheep, and hogs; dairy farms; poultry and egg farms; and animal specialty farms, such as apiaries (bee farms) and aquaculture (fish farms). Crop production includes the growing of cash grains, such as wheat, corn, and barley; field crops, such as cotton and tobacco; vegetables and melons; fruits and nuts; and horticultural specialties, such as flowers and ornamental plants.

About 2.1 million farms make up the agricultural production industry. According to the U.S. Department of Agriculture, an establishment must sell at least $1,000 worth of produce per year to qualify as a farm. Almost 1.9 million, or 91 percent, are small family farms with less than $250,000 in annual sales, but they own about two-thirds of the Nation's farmland. Operation of these farms is the primary occupation of about one-third of their owners; two-thirds are operated as a secondary source of income, primarily as homes for the rural lifestyle they afford, or as limited retirement enterprises. Large family farms numbered about 150,000 and commercially operated farms barely 40,000, but together they were responsible for just over half of the total output of the agricultural production industry.

Production of some types of crops and livestock tends to be concentrated in particular regions of the country, on the basis of growing conditions and topography. For example, the warm climates of Florida, California, and Arizona are well suited for citrus fruit production. The Southern States are the major growers of tobacco, cotton, rice, and peanuts, while the Northeast, from Maine to New Jersey, produces blueberries, maple syrup, and apples. Cranberry bogs are found mainly in Wisconsin, Massachusetts, and New Jersey. Hogs, grains, potatoes, and range-fed cattle are major products in the Plains States, where cattle feedlots also are numerous. In the Southwest and West, ranchers raise beef cattle. In Washington State, apples are an important crop. In California, most vegetables and fruits are prominent, as well as grapes for wine. Poultry and dairy farms tend to be found in most areas of the country.

The nature of the work in the agricultural production industry varies, depending on the type of product. Consumption of, and demand for, cash grains tend to be strong and steady, and these grains account for a substantial part of agricultural output. They are generally grown in large-scale operations in several areas in the Nation, but particularly in the Midwest and Plains States. During the planting, growing, and harvesting seasons, workers are busy for long hours, plowing, disking, harrowing, seeding, fertilizing, and harvesting. Fieldwork on large farms consisting of hundreds, sometimes thousands, of acres often is done using massive, climate-controlled tractors and other modern agricultural equipment. In some cases, teams of operators with tractors, combines, or other agricultural equipment travel from one farm to another during harvest time in a practice known as “custom harvesting.”

Small-scale establishments are more common in the Northeast, while larger establishments are located elsewhere in the country, particularly the Southwest and West. However, these small farms in States with limited growing seasons cannot provide produce for markets during the late fall, winter, and early spring. Therefore, fresh vegetables grown on large farms in warm States, such as California, Florida, and Arizona are shipped throughout the country in the cooler months. Vegetables generally are still harvested manually by groups of migrant farmworkers, although new machines have been developed to replace manual labor for some fruit crops. Vegetable growers on large farms of approximately 100 acres or more usually practice “monoculture,” large-scale cultivation of one crop on each division of land.

Dairy farms provide the Nation with milk, from which cheese, butter, ice cream, and a variety of other products are made. Dairy farming requires outdoor, as well as indoor, work. Farmers, farm managers, and farmworkers must feed cows, heifers, and calves; clean their stalls; and take them outside to pastures for exercise and grazing. Workers also may plant, harvest, and store several crops to feed the cattle through the cold of winter or the drought of summer.

Though the nature of the work on large livestock ranches in the West and Southwest still entails the kind of activities—such as branding and herding—often seen in cowboy movies, the use of modern equipment and technology has changed the way the work is done. Branding and vaccinating of herds, for example, are largely mechanized; and the use of trucks, portable communications gear, and geopositioning equipment now is common and saves valuable time for ranchers. The work on such establishments still tends to be seasonal and to take place largely outdoors. Common activities include raising feed crops, rotating cattle from one pasture to another, and keeping fences in good repair.

Most poultry and egg farms are large operations resembling production lines. Although free-range farms allow fowl some time outside during the day for exercise and sunlight, most poultry production involves mainly indoor work, with workers repeatedly performing a limited number of specific tasks. Because of increased mechanization, poultry growers can raise chickens by the hundreds—sometimes the thousands—under one roof. Eggs still are collected manually in some small-scale hatcheries, but, in larger hatcheries, eggs tumble down onto conveyor belts. Machines then wash, sort, and pack the eggs into individual cartons. Workers place the cartons into boxes and stack the boxes onto pallets for shipment.

Aquaculture farmers raise fish and shellfish in salt, brackish, or fresh water—depending on the requirements of the particular species. Farms usually use ponds, floating net pens, raceways, or recirculating systems, but some fish farms are actually in the sea, relatively close to shore. Workers on aquaculture farms stock, feed, protect, and otherwise manage aquatic life to be sold for consumption or used for recreational fishing. Horticulture farms raise ornamental plants, bulbs, shrubbery, sod, and flowers. Although much of the work takes place outdoors, in climates with cold seasons, substantial production also takes place in greenhouses or hothouses.

Although most agricultural establishments sell their products to food processing and textile companies and food retailers, some cater directly to the public. For example, some fruit and vegetable growers use the marketing strategy of “pick-your-own” produce, or set up roadside stands. Nurseries and greenhouses, which grow everything from seedlings to sod, also provide products directly to individual consumers as well as to retail establishments and other industries.

Working Conditions

Agricultural production attracts people who enjoy working with animals, living an independent lifestyle, or working outdoors on the land. For many, the wide-open physical expanse, the variability of day-to-day work, and the rural setting provide benefits that offset the sometimes hard labor, the danger that unseasonable or extreme weather may stunt or ruin crops, and the risk that unfavorable commodity prices may reduce income.

Although the working conditions vary by occupation and setting, there are some characteristics common to most agricultural jobs. Hours generally are uneven and oftentimes long; work cannot be delayed when crops must be planted and harvested, or when animals must be sheltered and fed. Weekend work is common, and farmers, agricultural managers, crew leaders, farm-equipment operators, and agricultural workers may work a 6- or 7-day week during planting and harvesting seasons. Graders and sorters may work evenings or weekends because of the perishable nature of the products. Almost 1 out of 4 employees in this industry work variable schedules, compared with fewer than 1 in 10 workers in all industries combined. Because much of the work is seasonal in nature, many farmworkers must cope with the difficulty in obtaining year-round, full-time employment. Migrant farmworkers, who move from location to location as crops ripen, live an unsettled lifestyle, which can be stressful.

Much farm and ranch work takes place outdoors in all kinds of weather and is physical in nature. Harvesting vegetables, in particular, requires manual labor and workers do much bending, stooping, and lifting. Some field workers may lack adequate sanitation facilities, and their drinking water may be limited. The year-round nature of much livestock production work means that ranch workers must be out in the heat of summer, as well as the cold of winter. Those who work directly with animals risk being bitten or kicked.

Farmers, farm managers, and agricultural workers in crop production risk exposure to pesticides and other potentially hazardous chemicals that are sprayed on crops or plants. Those who work on mechanized farms must take precautions when working with tools and heavy equipment to avoid injury. Farmwork has long had one of the highest incidences of illnesses and injuries of any industry. In 1999, crop production had 7.0 injuries and illnesses per 100 full-time workers, compared with an average of 6.3 throughout private industry.

Employment

In 2000, agricultural production employed a total of about 2 million workers, making it one of the largest industries in the Nation. This industry is unusual in that self-employed workers account more than 40 percent of its workforce. Among workers in all agricultural production occupations, over 1.1 million were wage and salary workers, 885,000 were self-employed, and 34,000 were unpaid family.

Among the industry's wage and salary workers, the single most common occupation was that of farmworkers, who made up nearly 54 percent of the overall workforce. The majority of self-employed workers were farmers and ranchers, but they accounted for only about 3.3 percent of wage and salary employment in this industry. Agricultural production is one of the few remaining areas of the economy in which unpaid family workers remain a significant part of the workforce. Most unpaid family workers on farms assist with the farmwork, but a small number do bookkeeping and accounting or act as farmers.

Employment is fairly evenly distributed between livestock production and crop production, with livestock-producing establishments employing about 50 percent of all workers and crop-producing establishments employing the other 50 percent. Establishments specializing in ornamental nursery products employed the largest number of workers in 2000, followed by vegetable- and melon-producing farms and fruit orchards. Crop farms, dairy farms, and vineyards also employed significant numbers of workers. Most individual agricultural-production establishments, however, employ fewer than 10 workers.

Workers in agricultural production tend to be older than workers in other industries. In 2000, 50 percent of the workers livestock production were age 45 or older, compared with 35 percent for all workers in all industries.

Occupations in the Industry

It takes several kinds of occupational specialties—from bookkeepers, accountants, and auditors to mechanics and repairers—to keep the industry functioning (table 1). However, despite upgrades in technology, new forms of machinery, and the complex financial records that must be kept, three occupations still compose the overwhelming majority of workers in agricultural production: Farmers, agricultural managers, and agricultural workers.

Farmers and ranchers are the self-employed owner-operators of establishments that produce agricultural output. Their work encompasses numerous tasks. They keep records of their animals’ health, crop rotation, operating expenses, major purchases, bills paid and income due, as well as pay bills and file taxes. Computer literacy has become as necessary for farmers as it has for many other occupations.

Farmers and ranchers must have additional skills to keep a farm or ranch operating day in and day out. A basic understanding and working knowledge of mechanics, carpentry, plumbing, and electricity all are helpful, if not essential, for running an agricultural establishment. The ability to maintain and repair equipment and facilities is important to keep costs down and the farm or ranch running smoothly.

Farmers who work large commercial farms for cash crops make decisions as much as a year in advance about which crop to grow. Therefore, a farmer must be aware of prices in national and international markets to use for guidance, while tracking the costs associated with each particular crop. When dealing in hundreds or thousands of acres of one crop, even small errors in judgment are magnified, so the impact can be substantial. Thus, large-scale farmers strive to keep costs to a minimum in every phase of the operation. Furthermore, risk management of portfolios—the practice of juggling stocks, buying and selling futures, and engaging in other paper deals like bond trading—is now becoming more important for farmers of large commercial farms.

Farm, ranch, and other agricultural managers operate the farm or ranch on a daily basis for the owners. Agricultural managers perform many of the functions of farmers and ranchers themselves, with the added tasks of managing the schedules and work of the employees. They assign, monitor, and assess individuals’ work day in and day out. They may keep in order all the paperwork needed to satisfy legal requirements, including payroll records and State and Federal tax records.

Besides managing farms and ranches, agricultural managers also oversee nurseries, greenhouses, timber tracts, cotton gins, and packing houses, among other agricultural establishments.

Large commercial farms may have a manager for different operations within the establishment. On smaller farms, managers oversee all operations. They purchase the inputs used in the farm’s production: Machinery, seed, fertilizers, herbicides and pesticides, fuel, and labor. They must be aware of any laws that govern the use of such inputs in the farm’s locality. Additionally, they may hire and oversee other farm employees as they plow, disk, harrow, plant, fertilize, harvest, and care for livestock. Agricultural managers must be knowledgeable about crop rotation, soil testing, and various types of capital improvements necessary to maximize crop yields.

Agricultural workers perform the whole spectrum of daily chores involved in crop or livestock production. Graders and sorters ensure the quality of the agricultural commodities that reach the market. They grade, sort, or classify unprocessed food and other agricultural products by size, weight, color, or condition. Farmworkers and laborers, crops, nurseries, and greenhouse manually plant, maintain, and harvest food crops; apply pesticides, herbicides, and fertilizer to crops; and cultivate plants used to beautify landscapes. They prepare nursery acreage or greenhouse beds for planting; water, weed, and spray trees, shrubs, and plants; cut, roll, and stack sod; stake trees; tie, wrap, and pack flowers, plants, shrubs, and trees to fill orders; and dig up or move field-grown and containerized shrubs and trees. Additional duties include planting seedlings, transplanting saplings, and watering and trimming plants.

Farmworkers, farm and ranch animals care for farm, ranch, or aquaculture animals that may include cattle, sheep, swine, goats, horses and other equine, poultry, finfish, shellfish, and bees. They also tend to animals raised for animal products, such as meat, fur, skins, feathers, eggs, milk, and honey. Duties may include feeding, watering, herding, grazing, castrating, branding, debeaking, weighing, catching, and loading animals. They also may maintain records on animals, examine animals to detect diseases and injuries, and assist in birth deliveries and administer medications, vaccinations, or insecticides, as appropriate. Daily duties include cleaning and maintaining animal housing areas. These farmworkers also repair farm buildings and fences. For farmworkers on dairy farms, the work may include operating milking machines and other dairy-processing equipment and hauling livestock products to market.

Some agricultural workers share duties as farm-equipment operators, and handle the tractors and equipment used for plowing, sowing, and harvesting using machinery such as fertilizer spreaders, haybines, raking equipment, balers, combines, and threshers.
 
Table 1. Employment of wage and salary workers in Agricultural production by occupation, 2000 and projected change, 2000-2010
(Employment in thousands)
Occupation Employment, 2000 Percent change, 2000-2010
Number Percent

All occupations

1,120 100.0 -2.5
 

Management, business, and financial occupations

198 17.6 4.1

Farm, ranch, and other agricultural managers

154 13.7 5.2

Farmers and ranchers

36 3.3 0.4
 

Service occupations

19 1.7 -1.7

Building and grounds cleaning and maintenance occupations

14 1.3 -0.5
 

Office and administrative support occupations

46 4.1 -10.1

Bookkeeping, accounting, and auditing clerks

18 1.6 -11.1

Secretaries and administrative assistants

9 0.8 -11.8
 

Farming, fishing, and forestry occupations

771 68.8 -3.8

First-line supervisors/managers/contractors of farming, fishing, and forestry workers

35 3.1 1.2

Farmworkers

610 54.5 -5.0

Graders and sorters, agricultural products

8 0.7 -8.3

All other farming, fishing, and forestry workers

116 10.4 1.1
 

Installation, maintenance, and repair occupations

21 1.9 -1.5

Heavy vehicle and mobile equipment service technicians and mechanics

8 0.7 -1.6

Other installation, maintenance, and repair occupations

10 0.9 -2.0
 

Production occupations

13 1.2 -1.8
 

Transportation and material moving occupations

37 3.3 -1.8

Truck drivers, heavy and tractor-trailer

13 1.1 1.3

Truck drivers, light or delivery services

9 0.8 0.1

Material moving occupations

12 1.1 -4.5
 
NOTE: May not add to totals due to omission of occupations with small employment.

 

Training & Advancement

The agricultural production industry is characterized by a large number of workers with low levels of educational attainment. More than 30 percent of this industry’s workforce does not have a high school diploma, compared with only 12.5 percent of all workers in other industries. The proportion of workers without a high school diploma is particularly high in the crop-production sector, where there are more labor-intensive establishments employing migrant farmworkers.

Training and education requirements for general farmworkers are few. Some experience in farm or ranch work is beneficial, but most tasks require manual labor and are learned fairly quickly on the job. Advancement for farmworkers is somewhat limited. Motivated and experienced farmworkers may become crew leaders or farm-labor contractors. Because firsthand knowledge of farm produce is good preparation for grading, sorting, and inspecting, some farmworkers may become agricultural inspectors. Farmworkers who wish to become independent farmers or ranchers first must buy or rent a plot of land.

Becoming a farmer generally does not require formal training or credentials. However, knowledge and expertise about agricultural production are essential to success for prospective farmers. The traditional method for acquiring such knowledge is through growing up on a farm. This background is becoming less and less common as the percentage of the U.S. population raised on farms continues to dwindle. But even with a farming background, a person considering farming would benefit from the formal schooling offered by land-grant universities in each State. Programs usually incorporate hands-on training into the curricula to complement the academic subjects. Typical coursework covers the agricultural sciences (crop, dairy, and animal) and business subjects such as accounting and marketing.

Experience and some formal education are necessary for agricultural managers. A bachelor’s degree in business with a concentration in agriculture provides a good background. Work experience in the various aspects of farm or ranch operations enhances knowledge and develops decision-making skills, which further qualifies prospective agricultural managers. The experience of having performed tasks on other farming establishments as a farmworker may save managers valuable time in forming daily or monthly workplans and in avoiding pitfalls that could result in financial burdens for the farm.

Whether it is gained through experience or formal education, both farmers and agricultural managers need enough technical knowledge of crops, growing conditions, and plant diseases to make sound scientific and business decisions. A rudimentary knowledge of veterinary science, as well as animal husbandry, is important for dairy and livestock farmers, ranchers, and agricultural managers.

It also is crucial for farmers, ranchers, and agricultural managers to stay abreast of the latest developments in agricultural production. They may do this by reviewing agricultural journals that publish information about new cost-cutting procedures, new forms of marketing, or improved production using new techniques. County cooperative extension agencies serve as a link between university and government research programs and farmers and farm managers, providing the latest information on numerous agriculture-related subjects. County cooperative extension agents may demonstrate new animal breeding techniques, or more environmentally safe methods of fertilizing, for example. Other organizations provide information—through journals, newsletters, and the Internet—on agricultural research and the results of implementing innovative methods and ideas.

Some private organizations are helping to make farmland affordable for new farmers through a variety of institutional innovations. The Land Link program, run by the Center for Rural Affairs, matches old farmers up with young ones. In the matching process, farmers approaching retirement arrange to pass along their land to young farmers wishing to keep the land under cultivation. This program has now been expanded to at least 18 States, and is now coordinated by the National Farm Transition Network.

Job Outlook

Increasing productivity in the highly efficient U.S. agricultural production industry is expected to meet domestic consumption needs and export requirements with fewer farms and less farm labor than in the past. Market pressures should continue to drive the consolidation trend toward fewer and larger farms through the 2000-10 period, resulting in a 7.8 -percent decline of overall employment in agricultural production. The decline will be fastest, at 14 percent, among self-employed and unpaid family workers, most of whom are farmers. Employment of wage and salary workers will 2.5 percent.

In recent decades, new technology in the form of larger and more efficient farm machinery and computerization of farm equipment and financial systems have resulted in higher yields and increased productivity. Further technological improvements will continue to boost output between 2000 and 2010.

Federal Government subsidy payments traditionally have shielded many agricultural producers from the ups and downs of the market. Currently, Federal policy is to open up the industry to competitive forces. In the United States, the 1996 Federal Agriculture Improvement and Reform Act (also known as the 1996 Farm Act) was enacted to phase out price supports for agricultural produce such as wheat, corn, grain sorghum, barley, oats, rice, and upland cotton. If price supports disappear entirely, farm establishments that grow such crops may experience wide fluctuations in incomes as they deal with the adverse affects of climate and price changes. The 1996 Farm Act also calls for replacing the Federal price support system for milk with new loan programs beginning in the year 2000, allowing the milk prices received by dairy farmers to be determined by market forces. Under these conditions, the larger and more financially sound farms will be best able to cope with international and domestic competitive forces. Owners of farms that do not have sufficient funds to withstand the changes in the marketplace and still cover all operating costs may eventually be forced to consolidate with larger operations or leave agricultural production altogether. However, full implementation of the 1996 Farm Act may take several years, and some aspects of the legislation may eventually be revised.

Employment on many farms will most likely continue to be characterized by low wages and lack of benefits. This, combined with continuously rising agricultural productivity, should translate into a further reduction in the workforce. Employment of farmers and ranchers is projected to decrease. Employment of agricultural managers, farmworkers, and graders and sorters is projected to rise, but more slowly than the average for all occupations. Prospects should be best for agricultural workers working in nurseries and greenhouses.

Employment declines resulting from growing productivity and consolidations might be counterbalanced somewhat by other changes taking place in the agricultural production industry. Employment in aquaculture, for example, has been growing steadily over the past 10 years in response to growth in the demand for food fish. Because of low prices for some agricultural commodities, more farmers—including some in the Midwest—are switching to aquaculture production. New developments in marketing milk and other agricultural produce through farmer-owned and -operated cooperatives hold promise for many dairy and other farms. Furthermore, demand for organic farm produce is growing. Consumers are becoming more conscious about the pesticides and fertilizers used in conventional agriculture, allowing farms of small acreage—which only 12 years ago appeared to have almost no future as working farms—to remain economically viable. Also, Federal, State, and local governments programs may increasingly provide assistance targeted at small farms. For example, some programs allow farmers to sell the development rights to their property to nonprofit organizations pledged to preserving green space. This immediately lowers the market value of the land—and the property taxes levied on it—making farming more affordable.

Earnings

In 2000, median earnings for workers in agricultural production were $335 a week, substantially lower than the median of $580 a week for all workers in private industry. In fact, only the highest 10 percent of workers in agricultural production earned more than $630 a week. Lower than average earnings are due in part to the low level of skill required for many of the jobs in the industry and the seasonal nature of the work.

Farm income can vary substantially, depending on a number of factors, including: The type of crop or livestock being raised, price fluctuations for various agricultural products, and weather conditions that affect yield. For a growing number of farmers and ranchers, particularly those working noncommercial farms, crop or livestock production is not their major occupation or source of income.

 

Source: Occupational Outlook Handbook, Bureau of Labor Statistics

 

 

 

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