Inflation is emerging as a formidable adversary for small to mid-size family farms across the United States, pushing many to the brink of financial sustainability and threatening the livelihoods of future generations of farmers. As input costs for essentials like fuel, machinery, and grain continue to rise sharply, the traditional family farm is facing a crisis that may reshape the agricultural landscape.
At the heart of this crisis is the story of Boerding Farm in St. Charles, Missouri, a farm passed down through six generations. Andrew Boerding, the current steward alongside his father Jim, voiced his concerns about the viability of continuing the family tradition. “I might be the generation that loses the farm,” said Andrew, a statement that reflects the growing uncertainty among farmers today.
Jim Boerding, who has witnessed the escalation of farming costs firsthand since his retirement two decades ago, emphasized the harsh economic reality. “The input costs are ridiculous… the fuel costs, higher machinery costs, and when the price of grain goes up, so does everything else,” he noted, highlighting the direct impact of these increases on their profit margins.
This narrative is not unique to the Boerding family. Across the U.S., family farms are experiencing similar pressures. The national average value of farm real estate rose significantly in 2023 to $4,080 per acre, marking an increase of $280 per acre. This uptick in land costs not only hinders the ability of existing farms to expand but also poses a formidable barrier for new entrants into farming.
Garrett Hawkins, president of the Missouri Farm Bureau, underscored the challenges faced by these farms due to escalating land costs. “There is tremendous competition for access to those acres,” Hawkins stated, pointing out the disadvantage small family farms face against larger, more financially equipped entities. Missouri itself saw a reduction of 300 family farms last year, a trend that Hawkins finds alarming.
The decline in family farms is a critical issue, with the U.S. witnessing a 7% drop in their numbers nationwide. This decline not only affects the agricultural sector but also the rural communities that depend on these farms for employment and economic stability.
To combat these challenges, Missouri has implemented a new state law aimed at providing incentives for beginning farmers. This legislation is designed to facilitate access to farmland by matching new farmers with those looking to retire or exit the industry, a move that Hawkins hopes will help preserve the farming community.
Despite these efforts, the pressure on farmers continues to mount. The rising costs associated with farming are compounded by broader economic factors and market dynamics that dictate commodity prices and operational expenses. These factors create a complex web of challenges that farmers like the Boerdings must navigate to maintain their heritage and livelihood.
The story of family farms grappling with inflation is more than an economic discussion; it’s about preserving a way of life that has defined rural America for generations. It encapsulates the struggle between maintaining traditional farming practices and adapting to new economic realities.
As the agricultural sector evolves, the resilience of these family farms will be tested. However, with supportive policies and community backing, there is hope that the tide can turn. Andrew Boerding summed up the sentiment shared by many in his community: “It’s something that I grew up with and my dad’s grown up with, and hopefully my children will grow up with.”
As family farms across the nation confront these unprecedented challenges, the question remains: Will the next generation of farmers have the opportunity to continue this storied tradition, or will inflation and economic pressures close the book on this chapter of American history?
Keywords:
inflation impact on farms, family farm crisis, rising farm costs, U.S. agriculture challenges, Boerding Farm, Missouri farm real estate, farmer incentives, agricultural sustainability, future of farming, economic pressures on farms.
