Corporate Farming - Corporate Farm Vs Family Farm

Corporate Farm Vs Family Farm

Farms are expensive to operate; input costs include farm machinery, crop insurance, fertilizers, irrigation, pesticides, fuel, and seeds. Some people question whether small family farms are still economically sustainable in the United States. However, there is a growing resurgence of interest in organic, free range, and locally grown family farm products.

One major difference between independent farming and corporate farming is that a corporate farmer is usually a contracted employee, rather than the owner of the farm. However, ownership itself does not mean independence. An owner-operated farm today faces many constraints that are completely out of the owner's control. Most of these can be seen in light of increasing concentration of ownership, not only of farms, but of the equipment and inputs necessary to farm, and the available sales channels.

Production contracts are a primary means of control and vertical integration of family farms. These are of two general types. Production management contracts specify the methods farmers must use. Resource-providing contracts require the contractor to also provide materials (e.g) and equipment. Under the latter, increasingly prevalent arrangement, the family farm owns its land and "sells" its output, but retains no real decision making control over the essential farming activities, like crop selection, equipment purchase, production methods, sales channels, and buyers.

A prime example is the drive to constantly improve production efficiency, as measured by farm output. By using successive waves of new technology (in agrichemicals, mechanization, crop varieties, drugs, etc.), output has steadily risen over the past decades.

Although 14% of total food production comes from the two percent of all farms in the United States that are owned by corporations or other non-family entities, 50% of food production comes from the biggest two percent of all farms. In 1900, it came from 17% of all farms.

Read more about this topic:  Corporate Farming

Famous quotes containing the words corporate, farm and/or family:

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    Gore Vidal (b. 1925)

    I respect not his labors, his farm where everything has its price, who would carry the landscape, who would carry his God, to market, if he could get anything for him; who goes to market for his god as it is; on whose farm nothing grows free, whose fields bear no crops, whose meadows no flowers, whose trees no fruit, but dollars; who loves not the beauty of his fruits, whose fruits are not ripe for him till they are turned to dollars. Give me the poverty that enjoys true wealth.
    Henry David Thoreau (1817–1862)

    Providing for one’s family as a good husband and father is a water-tight excuse for making money hand over fist. Greed may be a sin, exploitation of other people might, on the face of it, look rather nasty, but who can blame a man for “doing the best” for his children?
    Eva Figes (b. 1932)