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CED-78-178 1 (1978-09-26)

handle is hein.gao/gaobacjhr0001 and id is 1 raw text is: DOCUIENT RESUME 07350 -- fC2d679771 Changing Character and Structure of American Agricul.ture: An Overview. CED-78-178; B-114824. September 26, 1978. 152 pp. Staff study hy Henry Eschcege, Director, Community and Economic Development Div. Issue Area: Food: Future Cost and Supply of Resources for High Fooil Production (1711); Domestic Housing and Community Development: Economic Development in Rural Areas (2103); Energy (1600). Contact: Community and Economic Development Div. Budqet Function: Agriculture (350). organization Concerned: Department of Agriculture. Congressional Relevance: House Committee on Agriculture; Senate Committee on Agriculture, .utrition, and Poa'estry. Authozity: Famil7 Farm Act of 1972; S. 2826 (92nd Cong.). Family Far& Antitrust Act of 1975; S. 458 (94th Cong.). Food and 4griculture Act of 1977 (P.L. 95-113). Agricultural Nrketinq Act. Agricultural Adjustment Act of 1938. Agricultural Lct of 1948. Agricultural Act of 1954. Agricultural and Consumer Protection Act. Agricultural Adjustment Act of 1933. Tax Reform Act of 1969. Tax Reform Act of 1976. Tax Reduction Act of 1975. Tax Reduction Act of 1977. The nuaber of farms in the United States dropped from a high it 16.8 million in 1935 to 2.34 million reported in 1974. ODly 1.7 million farms are considered to be commercial, selling more than $2,500 of goods per year. Average farm size jumped from 197 acres in 1940 to 440 in 1974, and the average size of commercial farms is 534 acres. It is estimated that today less than one-h'If of all fa7.mland is ovne4 by the operator. Findings, 'nclnsions: Three basic pressures have contributed to the conceatration and specialization in the fare sectcr: rising farm costs, the availability of highly productive crop-specific farm technology, and Government policies and programs. Since World War II, general inflation and rising costs have continually narrowed profit margins, To maintain income, the surviving farmer increased his farm size, expanded production, and sought off-farm income. Although far4ers made use of technological breakthroughs, they found themselves requiring more equipment, more land, and more capital. Federal programs designc6. to buffer fluctuations in supply and demand of foodstuffs and fibers have provided farmers with direct subsidies since the 1930s; however, only 10% of all farmers receive djt-, Government subsidies, and 1% receive almost 29% of al'. Governmznt program payments. Tho corporate form of ownership makes up a substantial portion of larger farm classes, and changes in farn structure have had a substential impact on rural surroundings. Much of tae current Governaent policy ii based cn aggreqate statistics, and much more could be learned

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