Are There More Family Farms or More Corporate Farms

Big-scale agriculture driven by big business

The Usa poultry industry is frequently used as an example of corporate farming due to the influence of large integrators like Tyson Foods and Perdue Farms

Corporate farming is the practice of big-scale agriculture on farms owned or greatly influenced by large companies. This includes corporate buying of farms and selling of agronomical products, equally well as the roles of these companies in influencing agronomical pedagogy, research, and public policy through funding initiatives and lobbying efforts.

The definition and effects of corporate farming on agriculture are widely debated, though sources that describe large businesses in agriculture as "corporate farms" may portray them negatively.^[one]

Definitions and usage [edit]

The varied and fluid meanings of "corporate farming" have resulted in conflicting definitions of the term, with implications in detail for legal definitions.

Legal definitions [edit]

Most legal definitions of corporate farming in the United States pertain to tax laws,^[2] anti–corporate farming laws,^[3] and census information collection.^[4] These definitions mostly reference farm income, indicating farms over a certain threshold as corporate farms, equally well as ownership of the farm, specifically targeting farms that do not pass buying through family unit lines.

Common definitions [edit]

In public discourse, the term "corporate farming" lacks a firmly established definition and is variously applied. Notwithstanding, several features of the term's usage frequently arise:

1. Information technology is largely used as a pejorative with strong negative connotations.^[1]
2. Information technology most usually refers to corporations that are large-calibration farms, market agricultural technologies (in detail pesticides, fertilizers, and GMO's), take pregnant economic and political influence, or some combination of the 3.^{[v] [6]}
3. It is usually used in opposition to family unit farms^[7] and new agricultural movements, such every bit sustainable agriculture and the local nutrient movement.^[8]

Family farms [edit]

The Nunley Brothers Ranch in Sabinal, Texas has been family owned and operated for over 70 years.^[ix] The ranch is as well among the largest private landowners in the US.^[10]

"Family farm" and "corporate farm" are oft defined equally mutually exclusive terms, with the two having dissimilar interests.^[eleven] This by and large stems from the widespread assumption that family farms are pocket-sized farms while corporate farms are big-scale operations. While it is true that the majority of small farms are family owned, many large farms are also family businesses, including some of the largest farms in the US.^[12]

According to Food and Agronomical Arrangement of the United nations (FAO), a family farm "...is a ways of organizing agricultural, forestry, fisheries, pastoral and aquaculture production which is managed and operated by a family and predominantly reliant on family labour, both women's and men's. The family and the farm are linked, coevolve and combine economical, ecology, reproductive, social and cultural functions."^[13]

Additionally, at that place are large economic and legal incentives for family farmers to comprise their businesses.^[fourteen]

Contract farming [edit]

Farming contracts are agreements between a farmer and a buyer that stipulates what the farmer volition grow and how much they will abound ordinarily in return for guaranteed purchase of the product or financial back up in purchase of inputs (e.grand. feed for livestock growers).^[15] In most instances of contract farming, the farm is family owned while the heir-apparent is a larger corporation.^[16] This makes it difficult to distinguish the contract farmers from "corporate farms," because they are family unit farms but with pregnant corporate influence. This subtle distinction left a loop-hole in many state laws that prohibited corporate farming, effectively assuasive corporations to farm in these states as long as they contracted with local farm owners.^[17]

Non-farm entities [edit]

Cargill beefiness processing institute in Australia.

Many people too choose to include non-farming entities in their definitions of corporate farming. Beyond merely the farm contractors mentioned above, these types of companies commonly considered part of the term include Cargill, Monsanto, and DuPont Pioneer amongst others. These corporations practise not accept production farms, meaning they do not produce a pregnant amount of farm products. However, their role in producing and selling agricultural supplies and their buy and processing of farm products ofttimes leads to them being grouped with corporate farms. While this is technically incorrect, information technology is widely considered substantively accurate because including these companies in the term "corporate farming" is necessary to describe their real influence over agriculture.^{[ citation needed ]}

Arguments confronting corporate farming [edit]

Family farms maintain traditions including ecology stewardship and taking longer views than companies seeking profits. Family unit farmers may accept greater knowledge about soil and crop types, terrains, weather and other features specific to particular local areas of land can be passed from parent to kid over generations, which would exist harder for corporate managers to grasp.^{[ citation needed ]}

North America [edit]

In Canada, 17.4 percent of farms are owned by family corporations and ii.4 percent past not-family corporations.^[18] In Canada (equally in some other jurisdictions) conversion of a sole proprietorship family unit farm to a family unit corporation can have tax planning benefits,^[19] and in some cases, the departure in combined provincial and federal taxation rates is substantial.^[20] Also, for farm families with significant off-farm income, incorporating the farm can provide some shelter from high personal income revenue enhancement rates.^[21] Another of import consideration can be some protection of the corporate shareholders from liability.^[22] Incorporating a family unit farm tin can also be useful equally a succession tool,^[23] among other reasons because it can maintain a family farm every bit a feasible operation where subdivision of the subcontract into smaller operations amongst heirs might result in farm sizes also small to exist feasible.^[24]

The 2012 US Census of Agriculture indicates that v.06 percent of U.s.a. farms are corporate farms. These include family corporations (4.51 percentage) and not-family corporations (0.55 per centum). Of the family farm corporations, 98 percent are minor corporations, with ten or fewer stockholders. Of the not-family subcontract corporations, 90 percent are small corporations, with 10 or fewer stockholders. Not-family corporate farms account for i.36 pct of US farmland area. Family unit farms (including family corporate farms) account for 96.7 percent of U.s.a. farms and 89 percent of The states farmland area;^[25] a USDA study estimated that family farms deemed for 85 percent of U.s.a. gross subcontract income in 2011.^[26] Other farmland in the US is deemed for by several other categories, including single proprietorships where the owner is not the farm operator, non-family partnerships, estates, trusts, cooperatives, collectives, institutional, inquiry, experimental and American Indian Reservation farms.

In the U.s.a., the average size of a non-family corporate farm is 1078 acres, i.eastward. smaller than the average family corporate farm (1249 acres) and smaller than the average partnership farm (1131 acres).^[25]

US farm laws [edit]

To engagement, nine United states states have enacted laws that restrict or prohibit corporate farming. The first of these laws were enacted in the 1930s by Kansas and North Dakota respectively. In the 1970s, similar laws were passed in Iowa, Minnesota, Missouri, South Dakota and Wisconsin.^[27] In 1982, after failure to laissez passer an anti–corporate farming law, the citizens of Nebraska enacted by initiative a like subpoena into their state constitution.^[28] The citizens of South Dakota similarly amended their state constitution in 1998.^[27]

All nine laws have similar content. They all restrict corporate ability to own and operate on farmland. They all outline exceptions for specific types of corporations. More often than not, family subcontract corporations are exempted, although certain conditions may accept to be fulfilled for such exemption (e.grand. ane or more of: shareholders inside a specified degree of kinship owning a majority of voting stock, no shareholders other than natural persons, express number of shareholders, at least one family member residing on the farm).^[29] Still, the laws vary significantly in how they define a corporate farm, and in the specific restrictions. Definitions of a farm can include any and all farm operations, or be dependent on the source of income, every bit in Iowa, where 60 percentage of income must come from farm products.^[27] Additionally, these laws can target a corporation's use of the land, meaning that companies can own just not subcontract the country, or they may outright prohibit corporations from ownership and owning farmland.^[29] The precise wording of these laws has meaning impact on how corporations tin can participate in agriculture in these states with the ultimate goal of protecting and empowering the family farm.^[30]

Europe [edit]

Family farms across Europe are heavily protected past EU regulations, which have been driven in detail by French farmers and the French custom splitting state inheritance between children to produce many very pocket-sized family farms. In regions such as East Anglia, Great britain, some agribusiness is practiced through company ownership, but most large UK state estates are still owned by wealthy families such as traditional aristocrats, as encouraged by favourable inheritance tax rules.

Eurasia [edit]

Almost farming in the Soviet Union and its Eastern Bloc satellite states was collectivized. After the dissolution of those states via the revolutions of 1989 and the dissolution of the Soviet Marriage, decades of decollectivization and country reform take occurred, with the details varying substantially by state. In Russia, some corporeality of family farming has developed, but many former collective farms (kolkhozy) and state farms (sovkhozy) retained their collective/joint nature and instead became corporate farms with stock ownership, the farmers having incorporated.

Africa [edit]

Corporate farming has begun to take hold in some African countries, where listed companies such as Zambeef, Zambia are operated by MBAs as large businesses. In some cases, this has caused debates about land ownership where shares take been bought past international investors, especially from Prc.

Middle East [edit]

Some oil-rich middle east countries operate corporate farming including large-scale irrigation of desert lands for cropping, more often than not through partially or fully state-endemic companies.^{[ commendation needed ]}

Run into also [edit]

• Agribusiness
• Agricultural education
• Food industry
• History of agriculture
• Intensive farming
• Listing of agricultural universities and colleges
• Organic farming
• Outline of agriculture
• Sustainable agriculture
• United states Department of Agriculture

External links [edit]

• "Family farming is a lifestyle" 2014 - International Year of Family Farming – European Economical and Social Committee

References [edit]

1. ^ ^{a b} Rumble, Joy N. (March 2014). "The Power of Words: Exploring Consumers' Perceptions of Words Normally Associated with Agriculture" (PDF). Journal of Applied Communications. 98 (ii). doi:10.4148/1051-0834.1072. Archived from the original (PDF) on 15 March 2017. Retrieved 26 Oct 2014.
2. ^ "Farm, Farming and Who'southward a Farmer for Taxation Purposes" (PDF). Rural Taxation Didactics. August 2010. Archived from the original (PDF) on 6 November 2014. Retrieved 27 October 2014.
3. ^ Welsh, Rick (October 2001). "On the Effectiveness of land anti–corporate farming laws in the United States". Nutrient Policy. 26 (5): 543–548. doi:ten.1016/S0306-9192(01)00020-iii.
4. ^ "Farm Household Well-existence: Glossary". USDA Economic Research Service. 26 Baronial 2014. Retrieved 26 October 2014.
5. ^ Wittmaack, Nathan (July 2006). "Should Corporate Farming exist Express in the Us? An Economic Perspective" (PDF) . Retrieved 27 Oct 2014.
6. ^ Persaud, Suresh (16 April 2008). "Impact of Agribusiness Market Power on Farmers". Agricultural Policy for the 21st Century. pp. 127–145. doi:ten.1002/9780470390375.ch7. ISBN9780470390375.
7. ^ "Corporate Concentration in Agriulture". Subcontract Assist. Archived from the original on 17 October 2014. Retrieved 27 October 2014.
8. ^ Martinez, Steve (May 2010). "Local Food Systems: Concepts, Impacts, and Problems" (PDF). USDA Economic Research Service. Archived from the original (PDF) on 21 October 2014. Retrieved 26 Oct 2014.
9. ^ "Nunley Brothers Ranches: Almost". Retrieved 6 November 2014.
10. ^ Zeveloff, Julie (23 October 2012). "The 25 Biggest Landholders in America". Business organization Insider . Retrieved 6 November 2014.
11. ^ Stout, January (1996). "The Missouri Anti–Corporate Farming Human action: Reconciling the Interests of the Contained Farmer and the Corporate Farm". Retrieved 27 October 2014.
12. ^ "Ag 101: Demographics". U.Due south. Environmental Protection Agency. 2012. Archived from the original on 2012-01-12. Retrieved 27 Oct 2014.
13. ^ "Identifying the "family unit subcontract" | FAO". www.fao.org . Retrieved 2021-02-09 .
14. ^ Patsche, Wanda (20 Oct 2014). "Family Farms vs. Farm Corporations". Minnesota Farm Living. Archived from the original on 6 Nov 2014. Retrieved 27 October 2014.
15. ^ "Contract Farming Resource Eye: FAQ". Food and Agriculture Organization of the United Nations. 2014. Retrieved 27 Oct 2014.
16. ^ Warning, Matthew (30 June 2000). "The Affect of Contract Farming on Income Distribution: Theory and Testify" (PDF). Western Economics Association International Annual Meetings . Retrieved 27 Oct 2014.
17. ^ "Anti–Corporate Farming Laws in the Heartland". Customs Environmental Legal Defense Fund . Retrieved 27 Oct 2014.
18. ^ Statistics Canada. 2011 Census of Agronomics.
19. ^ BDO Canada LLP. 2014. Tax bulletin. Incorporating your farm business organization. http://www.bdo.ca/en/Library/Services/Taxation/Documents/Revenue enhancement-Bulletins/Incorporating-Your-Farm-Business.PDF Archived 2015-03-30 at the Wayback Machine
20. ^ Alberta Agriculture. To incorporate or not to incorporate? http://www1.agric.gov.ab.ca/$section/deptdocs.nsf/all/beef11403/$FILE/to_incorporate_or_not_to_incorporate.pdf
21. ^ FBC. 2006. Off-farm income is reason to incorporate the farm. http://fbc.ca/knowledge-middle/subcontract-income-reason-incorporate-farm
22. ^ Ontario Ministry building of Agriculture, Nutrient and Rural Affairs. 2010. Farm corporations. Agdex 812; guild 10-031.
23. ^ BDO Canada LLP. 2014. Tax bulletin. Succession planning for the transition of the family subcontract. http://world wide web.bdo.ca/en/Library/Services/Tax/Documents/Tax-Bulletins/Succession-Planning-for-the-Transition-of-the-Family-Farm.pdf Archived 2015-04-01 at the Wayback Machine
24. ^ Subcontract incorporation has advantages and disadvantages. http://www.hth-accountants.ca/Files1/Articles/Article_files/WP2001-x-11/WP2001-ten-eleven.htm
25. ^ ^{a b} United states Section of Agronomics. 2014. 2012 Census of agronomics. United States summary and country data. Book ane. Geographic area series. Part 51 Ac-12-A-51.
26. ^ Hoppe, R.A. 2014. Structure and finances of U.Due south. farms: family farm written report, 2014 edition. Usa Section of Agriculture, Economic Research Service EIB-132.
27. ^ ^{a b c} "Anti–Corporate Farming Laws". Encyclopedia of the Not bad Plains . Retrieved 27 October 2014.
28. ^ "Initiative 300: Nebraska's Anti–Corporate Farming Police". Center for Rural Affairs . Retrieved half dozen Nov 2014.
29. ^ ^{a b} "Corporate Farming Laws". National Agricultural Constabulary Center . Retrieved 6 Nov 2014.
30. ^ "Corporate Farming (Restrictions on Corporate Farming/Family Farm Preservation)". National Agronomical Law Center . Retrieved six November 2014.

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Source: https://en.wikipedia.org/wiki/Corporate_farming

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