Management Needs of Small-Scale Agriculture

The only thing homogeneous about small-scale farms are the words "small-scale farms." America's small farms those farms that generate $40,000 or less of agricultural sales each year constitute about 75 percent of the 2.2 million total U.S. farms. Small farms are found throughout America, from Maine to Texas, from the Atlantic to the Pacific, and in both rural and urban settings. They engage in a variety of enterprises apples to zucchini to swine and a host of enterprises in between. Their owners must manage all aspects of the small farm business. Being small makes it critical for good management to prevail. Small-scale farm operators cannot survive mistakes. Too frequently, one mistake can prove fatal to the small business.

The management needs of small-scale agricultural enterprises are significant, perhaps greater than those of larger farms. Good management decisions are necessary for small-scale agriculture to succeed. Small-scale farms need support from all levels national, regional, and local. The needs change constantly and new information must be made available.

Small-acreage enterprises are management-intensive. While the usual constraints of money and labor apply to small farms the same as they do to large enterprises, small farms face an additional problem: time management. Since 70 percent of all small farms are run as part-time operations, efficient allocation of time becomes crucial.

A properly managed small-scale farm is comparable to a smooth running engine. A skilled person must properly adjust the fuel mixture, the timing, and the idle speed for smooth, efficient operation. To be successful, the small farm manager must tune up three aspects of the farm business marketing, capital/ finance, and appropriate technology. Managers of small-scale farms often experience great difficulty in properly managing these three problems to achieve a smooth running small-scale farm. They need information from all sources to help them manage their enterprises.

Success in the marketplace for small-scale agricultural entrepreneurs requires marketing skill, use of appropriate technology systems, and skill in handling capital and finance. (USDA Photo by Ron Sutton)

Small-scale farmers frequently farm part-time; the size of farms and locations are very diverse; and almost all suffer from serious limitations on one or more resource. Add to this list growing concerns about the environment, conservation, global issues, right to farm, the political action process, and a fickle consumer. Indeed, to succeed in small farming is a constant challenge in 1989. The key is management proper management of assets and options of the small-scale farm operator. This particular segment of agriculture needs a focused national approach to resolve the identified problems now facing small-scale farmers throughout America and to better understand regional and local issues.

Viewed from a national perspective, the management needs of small-scale agricultural entrepreneurs are numerous and they must address diverse problems. The need is compounded because different regions, States, and even counties present different situations, including climates, soils, population densities, and tax rates. However, all problems and needs must be addressed for people living on small farms to maintain a competitive economic status, to continue to contribute to the recovery of agriculture, and to give social strength to rural America. Also, there is increasing awareness that small-scale farmers make significant contributions to both the agribusiness and consumer industries of rural communities.

The Federal Response

In December 1986, an Office for Small-Scale Agriculture (OSSA) was created at USDA to improve the flow of information about small-scale farming to agricultural producers and to consumers. The office helps coordinate USDA Agencies and helps them direct research and educational programs of interest to small-scale farms. A lack of know-how can prevent small-scale farmers from succeeding, so disseminating useful information is crucial.

OSSA was created to identify the expertise of various systems and to gather and disseminate information to maximize the potential effectiveness of small-scale entrepreneurs. The purpose is to improve management both on farms and at USDA.

OSSA has the following six initiatives to help small-scale farm operators with some of their management decisions:

1. A series of fact sheets entitled A Small-Scale Alternative help people who are interested in alternative crops and livestock for small-scale farms. The first 10 fact sheets in the series are on mushrooms, herbs, specialty vegetables, wildflowers, foliage plants, dessert vines, goats, sheep, exotic livestock, and exotic fruits. Several others are in various stages of completion.

2. A quarterly newsletter, Small-Scale Agriculture Today, provides information on small-scale agriculture with a focus on relevant topics, technology, and events. The newsletter gives small-scale farmers access to information from such sources as growers, Extension Agents, soil conservationists, and university researchers, as well as the wealth of material available through USDA. The newsletter is short four pages. Topics are condensed down to a few sentences, with directions on how to receive more information.

3. A small-scale agriculture directory was compiled and distributed by OSSA in the spring of 1989. About 500 Federal and State experts on small-scale agriculture or small farms are listed, with their addresses, telephone numbers, and three specific areas of expertise, such as market development, greenhouse culture, blueberries, or sheep. This listing of researchers and educators was distributed to public libraries, as well as Federal and State institutions that must address small-scale agricultural needs and is also for sale from the Government Printing Office. It is a management tool that enables improved networking.

4. A video on small-scale agriculture, "The Perfect Tomato, The Ideal Blackberry: Making Money in Small-Scale Agriculture," demonstrates that there is great potential for farmers who can diversify. However, many farm families are confused or bewildered by the term "diversify" and experience difficulty in selecting an alternative enterprise. This 9-minute video is aimed at individuals, farm organizations, and USDA agencies interested in promoting diversification. The video explores such topics as urbanization, specialty crops vs. traditional crops, sustainable agriculture, and marketing.

5. OSSA promotes and participates in conferences on small-scale agriculture sponsored by both public and private agencies. The small-scale newsletter is a billboard for upcoming meetings that help people network with each other.

6. In 1988, OSSA commissioned a study of ongoing USDA research and Extension efforts that could benefit small-scale agriculture. Part of the study is a survey of federally funded research that benefits small-scale agriculture. A detailed investigation of 14,603 Federal and State agricultural research projects seeks to ascertain which of them are of use to small-scale agriculture. A second part of the study was conducted in November 1988, when small farm experts from USDA, State departments of agriculture, universities, and legislatures, as well as farmers, met in a series of four seminars to discuss current research efforts and the unmet needs of small farmers. The results of this study will enable policymakers to set future research and educational agendas to help provide the kinds of information that are really needed.