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Farmers, Ranchers, and Agricultural Managers:

Farmers and ranchers own and operate mainly family-owned farms. They also may lease land from a landowner and operate it as a working farm. The type of farm they operate determines their specific tasks. On crop farms—farms growing grain, cotton, other fibers, fruit, and vegetables—farmers are responsible for preparing, tilling, planting, fertilizing, cultivating, spraying, and harvesting. After the harvest, they make sure that the crops are properly packaged, stored, or marketed. Livestock, dairy, and poultry farmers must feed and care for the animals and keep barns, pens, coops, and other farm buildings clean and in good condition. They also plan and oversee breeding and marketing activities. Horticultural specialty farmers oversee the production of ornamental plants, nursery products—such as flowers, bulbs, shrubbery, and sod—and fruits and vegetables grown in greenhouses. Aquaculture farmers raise fish and shellfish in marine, brackish, or fresh water, usually in ponds, floating net pens, raceways, or recirculating systems. They stock, feed, protect, and otherwise manage aquatic life sold for consumption or used for recreational fishing.

Operators of small farms usually perform all tasks, physical and administrative. They keep records for management and tax purposes, service machinery, maintain buildings, and grow vegetables and raise animals. Operators of large farms, by contrast, have employees who help with the physical work that small-farm operators do themselves. Although employment on most farms is limited to the farmer and one or two family workers or hired employees, some large farms have 100 or more full-time and seasonal workers.

Agricultural managers manage the day-to-day activities of one or more farms, ranches, nurseries, timber tracts, greenhouses, and other agricultural establishments for farmers, absentee landowners, or corporations. Their duties and responsibilities vary widely, but focus on the business aspects of running a farm. On small farms, they may oversee the entire operation; on larger farms, they may oversee a single activity, such as marketing. Agricultural managers usually do not perform production activities; instead, they hire and supervise farm and livestock workers, who perform most of the daily production tasks. In these cases, managers may establish output goals; determine financial constraints; monitor production and marketing; hire, assign, and supervise workers; determine crop transportation and storage requirements; and oversee maintenance of the property and equipment.

Farmers, ranchers, and agricultural managers also negotiate with banks and other credit lenders to get the best financing deals for their equipment, livestock, and seed. They also must keep abreast of constantly changing prices for their products and manage the risk of fluctuating prices. Those who plan ahead may be able to store their crops or keep their livestock to take advantage of higher prices later in the year. Those who participate in the risky futures market, where contracts on future production of agricultural goods are bought and sold, can minimize the risk of sudden price changes by buying futures contracts which guarantee that they will get at least a certain price for their agricultural goods when they are ready to sell.

Farmers who grow produce and perishables have different demands on their time. For example, organic farmers must maintain cover crops during the cold months, thus keeping them occupied with farming beyond the typical growing season.

Farmwork also can be hazardous. Tractors and other farm machinery can cause serious injury, and workers must be constantly alert on the job. The proper operation of equipment and handling of chemicals are necessary to avoid accidents, safeguard one’s health, and protect the environment.

On very large farms, farmers spend substantial time meeting with farm managers or farm supervisors in charge of various activities. Professional farm managers overseeing several farms may divide their time between traveling to meet farmers or landowners and planning the farm operations in their offices. As farming practices and agricultural technology become more sophisticated, farmers and farm managers are spending more time in offices and at computers, where they electronically manage many aspects of their businesses. Some farmers also spend time at conferences exchanging information, particularly during the winter months.

Growing up on a family farm and participating in agricultural programs for young people, such as the National FFA Organization or the 4-H youth educational programs, are important sources of training for those interested in pursuing agriculture as a career. However, modern farming requires increasingly complex scientific, business, and financial decisions, so postsecondary education in agriculture is important even for people who were raised on farms.

The completion of a 2-year degree, or better, a 4-year bachelor’s degree program in a college of agriculture, is becoming increasingly important for farm managers and for farmers and ranchers who expect to make a living at farming. A degree in business or farm management with a concentration in agriculture is important, but even after obtaining formal education, novices may need to spend time working under an experienced farmer to learn how to put into practice the skills learned through academic training. A small number of farms offer, on a formal basis, apprenticeships to help young people acquire such practical skills.

Farmers, ranchers, and agricultural managers need the managerial skills necessary to organize and operate a business. A basic knowledge of accounting and bookkeeping is essential in keeping financial records, while knowledge of sources of credit is vital for buying seed, fertilizer, and other inputs necessary for planting. It also is necessary to be familiar with complex safety regulations and requirements of governmental agricultural support programs. Computer skills are becoming increasingly important, especially on large farms, where computers are widely used for recordkeeping and business analysis. For example, some farmers, ranchers, and agricultural managers use personal computers to access the Internet to get the latest information on prices of farm products and other agricultural news. In addition, skills in personnel management, communication, and conflict resolution are equally important in the operation of a farm or ranch business.

The complexity of modern farming and keen competition among farmers leave little room for the marginally successful farmer. Therefore, the long-term trend toward the consolidation of farms into fewer and larger ones is expected to continue over the 2004–14 period and result in a continued decline in employment of self-employed farmers and ranchers and slower-than-average growth in employment of salaried agricultural managers. As land, machinery, seed, and chemicals become more expensive, only well-capitalized farmers and corporations will be able to acquire many of the farms that become available. The larger, more productive farms are better able to withstand the adverse effects of climate and price fluctuations upon farm output and income. Larger farms also may have advantages in obtaining government subsidies and payments as these payments are usually based on per-unit production.

Aquaculture may continue to provide some new employment opportunities over the 2004–14 period. New concerns about overfishing and the depletion of the stock of some wild fish species will likely lead to more restrictions on deep-sea fishing, even as public demand for the consumption of seafood continues to grow. This demand has spurred the growth of aquaculture farms that raise selected aquatic species—such as shrimp, salmon, trout and catfish—in pens or ponds. Aquaculture’s presence even in landlocked States has increased as farmers attempt to diversify and cater to the growing demand for fish by consumers. In addition, growing demand for horticulture products, such as flowers, ornamentals, trees, shrubs, and other nonedibles, is expected to produce better employment opportunities for greenhouse and nursery farmers and managers.

Earnings:
Incomes of farmers and ranchers vary greatly from year to year because prices of farm products fluctuate with weather conditions and other factors influencing the quantity and quality of farm output and the demand for those products. A farm that shows a large profit one year may show a loss the following year. According to the U.S. Department of Agriculture, the average net cash farm business income for farm operator households in 2004 was $15,603. This figure, however, does not reflect that farmers often receive government subsidies or other payments that supplement their incomes and reduce some of the risk of farming. Additionally, most farmers—primarily operators of small farms, have income from off-farm business activities or careers, often greater than that of their farm income.

www.bls.gov/oco/ocos176.htm

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