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A Limited Resource Farmer or Rancher is one of a larger group of “
Legislation
The Agricultural Credit Act of 1987 requires that Limited Resource Farmers and Ranchers be provided adequate access to USDA technical assistance programs and activities. [3]
The
Definition
The term Limited Resource Farmer/Rancher was defined in October of 2002 after a three-month analysis conducted by the Economic Research Service, the National Agricultural Statistics Service, the Foreign Agricultural Service, and the Natural Resources Conservation Service. [3] The USDA maintains this definition for the 2008 Farm Bill. [3]
A Limited Resource Farmer/Rancher or Forest Owner has:[4]
- Direct or indirect gross farm sales not exceeding the current indexed value in each of the previous 2 years
- Total household income not exceeding the national poverty level for a family of 4, or less than half of the county median household income in each of the 2 years prior
An entity or joint operation can be considered a Limited Resource Farmer or Rancher if every involved individual of the farm or ranch qualifies independently as a Limited Resource Farmer or Rancher. [4]
As of fiscal year 2012, gross farm sales must not exceed $163,200 in each of the previous 2 years.
Conservation
The
There are several Federal Conservation Programs in place today. Three of the major programs are CRP, EQIP, and WRP. [1]
- Conservation Reserve Program (CRP): This program implements conservation strategies by encouraging the planting of resource-conserving crop cover on environmentally sensitive land. CRP is the largest Federal conservation program, with outlays totaling $1.86 billion in 2007. [1]
- Environmental Quality Incentives Program (EQIP): This program provides incentives and assistance in incorporating conservation infrastructure and practices on working agricultural land. In 2007, total funding for the program was $1 billion. [1]
- Wetlands Reserve Program (WRP): This program aids in the retirement of marginal agricultural lands to facilitate enhancement of wetlands. In 2007, WRP funding totaled approximately $227 million. [1]
The Natural Resources Conservation Service (NRCS), an agency of the USDA, provides conservation technical assistance and other resources to Limited Resource Farmers and Ranchers who, when compared to other farmers in a given area, have particular disadvantages regarding access to USDA program assistance. [4] The NRCS determines the status of a Limited Resource Farmer or Rancher by considering income and farm sales. [4]
Self-Determination Tool
The USDA developed the Limited Resource Farmer and Rancher Online Self Determination Tool in order to enable and encourage farmers to self-determine eligibility as a Limited Resource Farmer, Rancher, or Forest Owner, and further determine eligibility for USDA programs and benefits. [3] The tool was developed through a joint-effort of several agencies within the department, including the ERS, NASS, and NRCS and is mandated by the Farm Bill. [3] When using the tool, the applicant first selects his or her state and county/area of residence, which then provides information specific to that area regarding the requirements of gross farm sales and income levels. [3] The applicant can easily determine if he or she meets those requirements, and then print results. [3]
The tool can be accessed at: http://www.lrftool.sc.egov.usda.gov
Trends and Implications
A report provided by the USDA Economic Research Service demonstrates particular trends of Limited Resource Farmers, as well as other "targeted" farmers.
- During the years 2005-2007, Limited Resource Farmers made up approximately 33 percent of all farming operations. [1]
- Limited Resource Farmers heavily rely on off-farm income, usually coming from unearned sources such as
- Limited Resource Farmers are most likely of all targeted farmers to face liquidity constraints [1]
- Limited Resource Farmers are less likely to adopt conservation strategies related to water quality, perhaps due to financial constraints, benefits of adopting alternative conservation practices, or the smaller nature of their farms. [1]
- In 2006, Beginning and Limited Resource Farmers were more likely to adopt conservation strategies related to plant quality and productivity, as well animal needs. [1]
- Limited Resource Farmers are less likely to participate in EQIP than other farmers, and therefore targeting them for participation in programs could have economic and environmental impacts. [1]
- Limited Resource Farmers operate fewer acres, so it is important to consider whether differences are due to smaller farm size as opposed to farm type. [1]
These conclusions demonstrate evidence that "targeted farmers" tend to operate more environmentally sensitive land, have different conservation priorities, and receive different levels of payment. [1] Furthermore, this report suggests that economic and environmental outcomes could change with increased targeted-farmer enrollment in assistance programs. [1] The report suggests that further research and acknowledgement of potential barriers or constraints that Limited Resource Farmers, as well as other "targeted" farmers, may encounter may help improve enrollment rates. [1] Increased enrollment rates could potentially lead to cost-effective procurements of environmental benefits, making Limited Resource Farmer policies more effective. [1]
References
- ^ a b c d e f g h i j k l m n o p q r s t u v w x Nickerson, Cynthia; Hand, Michael (December 2009). "Participation in Conservation Program by Targeted Farmers: Beginning, Limited-Resource, and Socially Disadvantaged Operators' Enrollment Trends". Archived from the original (PDF) on April 16, 2012.
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: More than one of|author=
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specified (help) - ^ Natural Resources Conservation Service (September 6, 2011). "Limited Resource Farmer and Rancher Home". Archived from the original on April 16, 2012.
- ^ a b c d e f g David Buland (August 31, 2011). "Limited Resource Farmer and Rancher (LRF/R) About". Archived from the original on April 16, 2012.
- ^ a b c d e f Natural Resources Conservation Service (February 9, 2012). "Small & Limited and Beginning Farmers & Ranchers". Archived from the original on April 16, 2012.
- ^ a b Natural Resources Conservation Service (September 6, 2011). "Limited Resource Program Definition". Archived from the original on April 16, 2012.