Agec 2003 Ch 2

Front 1

Family farms are incorporated for three reasons:

Back 1

 A corporate form of organization can be used to transfer farms to others at a lower cost than other forms of business organization

 Employee benefits such as social security and unemployment insurance are tax deductible for the corporation, but not an
individual proprietorship

 A corporation can separate management from ownership in order to reduce liability of both management and owners

Front 2

Family Farm Expanding Class

Back 2

 Sales > $100,000
 Produced 82% Output
 Received 62% of Government Support
Payments
 Off-Farm Income $37,392 per Farm
 account for 17% of all farms

Front 3

Family Farm Declining class

Back 3

 Sales Between $20,000 and $99,000
 Produced 14% of Output
 Received 26% of Government Payments
 Off-Farm Income - $63,396 per Farm
 Account for 22% of all farms

Front 4

Family Farm non-commercial class

Back 4

 Sales Less Than $20,000
 Off-Farm Income - $49,678
 Account for 61% of all farms

Front 5

Vertical coordination

Back 5

the linking of successive stages in the marketing and production of a commodity in one decision entity

Front 6

Cooperatives

Back 6

A business that is organized, capitalized, and managed for its member patrons furnishing or marketing goods and services to the patrons at cost.

Front 7

3 benefits of cooperatives

Back 7

 Member patrons receive patron dividends which are a return of the profits or net savings of the cooperative.
 They are often returned based on the magnitude of transaction made between the cooperative and the farmer.
 The most common types of cooperatives are supply and marketing cooperatives.

Front 8

ERS County Typologies -
Farming Dependent

Back 8

15% or more of earnings from farming or 15% or
more of residents in farming occupations between
1998 – 2000 (440 total counties, 403 rural counties)

Front 9

ERS County Typologies - Mining Dependent

Back 9

15% or more of earnings from mining activities between 1998 – 2000 (128 total counties, 113 rural
counties)

Front 10

ERS County Typologies -Manufacturing Dependent

Back 10

25% or more of earnings from manufacturing activities between 1998 – 2000 (905 total counties, 585 rural counties)

Front 11

Family farms are incorporated for three reasons:

Back 11

 A corporate form of organization can be used to transfer farms to others at a lower cost than other forms of business organization

 Employee benefits such as social security and unemployment insurance are tax deductible for the corporation, but not an
individual proprietorship

 A corporation can separate management from ownership in order to reduce liability of both management and owners

Front 12

Family Farm Expanding Class

Back 12

 Sales > $100,000
 Produced 82% Output
 Received 62% of Government Support
Payments
 Off-Farm Income $37,392 per Farm
 account for 17% of all farms

Front 13

Family Farm Declining class

Back 13

 Sales Between $20,000 and $99,000
 Produced 14% of Output
 Received 26% of Government Payments
 Off-Farm Income - $63,396 per Farm
 Account for 22% of all farms

Front 14

Family Farm non-commercial class

Back 14

 Sales Less Than $20,000
 Off-Farm Income - $49,678
 Account for 61% of all farms

Front 15

Vertical coordination

Back 15

the linking of successive stages in the marketing and production of a commodity in one decision entity

Front 16

Cooperatives

Back 16

A business that is organized, capitalized, and managed for its member patrons furnishing or marketing goods and services to the patrons at cost.

Front 17

3 benefits of cooperatives

Back 17

 Member patrons receive patron dividends which are a return of the profits or net savings of the cooperative.
 They are often returned based on the magnitude of transaction made between the cooperative and the farmer.
 The most common types of cooperatives are supply and marketing cooperatives.

Front 18

ERS County Typologies -
Farming Dependent

Back 18

15% or more of earnings from farming or 15% or
more of residents in farming occupations between
1998 – 2000 (440 total counties, 403 rural counties)

Front 19

ERS County Typologies - Mining Dependent

Back 19

15% or more of earnings from mining activities between 1998 – 2000 (128 total counties, 113 rural
counties)

Front 20

ERS County Typologies -Manufacturing Dependent

Back 20

25% or more of earnings from manufacturing activities between 1998 – 2000 (905 total counties, 585 rural counties)