You are farming in a much different way than Dad and Grandpa. And your son and grandson will farm in a much different way than you are. Agriculture is a work in progress and always will be. But what can we expect in the future, so we can be better prepared?
Purdue University economists Michael Boehlje and Bruce Erickson look at farming in the 21st century and say new management strategies and new business models will be required. Among the drivers of structural change, they include:
Technology
Human capital
Financial structure
Business climate
Family life cycle
Market's value chain
Boehlje and Erickson believe that farm operation will be more important than actual farm ownership. As operators grow older, two to three percent of farmland ownership changes annually, but the amount of farmland available to an operator is four to five percent annually. The more aggressive operators who are successful at establishing a relationship with owners will have more opportunity.
Technology has mitigated time constraints, say the economists, who cite an example of being able to put in a crop during a narrow planting window: "If planting 2000 acres in Illinois starting April 1 using a 24-row planter and working 12 hour days, there is about a 70% chance of finishing planting by May 1. If auto-guidance allows 16 hours per day and improves efficiency five percent, chances improve to 85%. With one 36-row planter and guidance, the chances of completion by May 1 exceed 90%."