06/16/2008
Slowing Economy Forcing Farmers to Make Changes
Farming Machines Increasing costs are forcing some farmers in West Virginia tochange the way they do business."A lot of farmers own their land but let somebody else farm it,"said Bill Aiken, field representative for the West Virginia FarmBureau. "In a lot of areas, land rent is not very expensive becausethere aren't many farmers around to rent it."According to the U.S. Census Bureau, there are 21,000 farms in WestVirginia. Of those, about 14,000 farmers file a Schedule F with theInternal Revenue Service. That document reports profits and lossesfrom farming."They've been doing it for years," he said of the practice ofleasing land to others. "As people get older and new generations(take ownership of farms), it's becoming more and more common."It keeps the land active," Aiken added.Aiken knows one Tucker County farmer who regularly receivessolicitations in the mail from farm owners who want to rent land,he said. That farmer has a larger operation and rents land fromothers in the area."In other areas, land is scarce," Aiken said. "Around Morefield,it's hard to find farm land."Increasing business costs are leading some farmers to find moreprofit in leasing their land rather planting and harvesting it,Aiken said. Diesel and other fuels used to run farm equipment andfertilizers have experienced tremendous price increases the pastcouple of years, he said."The biggest dollar value in West Virginia is in poultry," he said."... But most farmers raise cattle. (The increases) really affectthem a lot."Something as basic as transporting cattle to market costs much moretoday than it did just a year ago, Aiken said.Farmers today are caught in a seemingly vicious and never-endingcycle from which there is no escape in sight. For example, one waygovernment officials have chosen to help alleviate the high fuelprices, which would help farmers, is increasing the use of ethanol.But ethanol is made from corn. Today, about 20 percent of thenation's corn crop goes to ethanol production. That has led to anincrease in corn prices, which hurts farmers.Adding to the difficulties associated with increased prices, somefarmers in the state, particularly those in the fruit business, arehaving problem finding enough help, Aiken said."It's not as much of a problem in West Virginia as it is otherplaces," he said. "But it can be difficult to get adequate help."The fruit industry needs farm laborers because the product must behandled with care, Aiken said. Harvesting machines can be rough andbruise delicate fruits."It's been difficult to get people to pick since the crackdown onimmigration," he said. "... Most all fruit is picked by handbecause it can't be bruised."West Virginia used to be among the top 10 states in the nation forproduction of some fruit, such as peaches, he said. But the numberof orchards has declined recently."There are still a lot, but it's not where we want to be," Aikensaid.But that trend could be reversing somewhat, he said."The trend is for buying local," Aiken said. "We're seeing more andmore farmers markets."Despite all the problems, agriculture remains in important segmentof the state's economy, he said."Agriculture is still a pretty viable industry in the state," hesaid.Some farmers are benefiting from the healthy oil and natural gasmarkets in the state, he said. Those who own lands on which thosewells are located are seeing increased royalties today.Farmers who know where to look can find success in today's market,Aiken said."I think there are some opportunities to look at in this market,"he said. "The biggest competitor for West Virginia apples wasWashington State. Now, (fuel costs) have caused them to increase.It gives our guys a competitive edge. You have to look foropportunities."
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