USDA’s latest Census of Agriculture shows less than 10% of all producers are under the age of 35 today, and fewer still are under the age of 30. However, those who have the opportunity to farm are jumping at the chance.
“I think deep down I always knew I wanted to come back and be involved somehow,” says Lindsay Baneck, a farmer in Helenville, Wis. “I think little by little I realized there’s a huge opportunity here for me to take over this operation.”
USDA data shows that farmers under the age of 40 may be a rare breed, but new research shows that trend might be changing.
Farm Journal surveyed Next Gen farmers, and found more are taking charge of their families’ farm operations, despite not having formal succession plans in place.
The survey uncovered:
- 80% of younger farmers identify as the owner/operator, even though a legal transition of ownership hasn’t occurred.
- 58% of younger farmers surveyed said they don’t have a formal succession plan in place.
Farm CPA Paul Neiffer says retirement is playing a role in the younger generation’s decision to come back to the farm.
“We Baby Boomers were more willing to retire than the generation before us, because we want to have our free time,” says Neiffer. “Now, we still want to drive the tractor and drive the combine, but we want to retire. So, I definitely see a lot more Millennials and even some of the older Gen Zs, they are taking over a lot of the buying decisions. And Mom and Dad are fine with that.”
Terry Griffin is a professor in the department of agricultural economics at Kansas State University. He says the generational shift in agriculture is something he’s been studying closely.
“We’re seeing a decline in the proportion of the oldest generation, the Silent Generation is decreasing every year. And those are been replaced largely by Millennial and Gen Z farmers. Plus, we have several multi-generational farms as well,” says Griffin.
As younger farmers desire to use more technology on the farm, Griffin points out they don’t always have the financial footing to do so.
“What we’re seeing with multi-generation farms is that if you have an older generation and a younger generation, they tend to have more technology than either of those farms on their own, or what we call sole proprietors,” says Griffin. “A Gen Z farm, on their own, may not have the technology due to a lack of resources. And a Silent Generation farm may have a lack of technology due to disinterest. But put those two together with the financial resources and the interest, and they typically have more technology than other farms.”
The Farm Journal farmer survey also asked younger farmers, “When thinking about technology, which of the following best describes you?” More than half responded they adopt new technologies when it’s practical. And 28% say they let others try them first, but they are next in line.
“We’ve all seen some of the older farm operators who would stay with the same ag retailer, the same co-op or the same bank lender, maybe for longer than they should have. I’m observing the younger generation doesn’t do that so much. They’re looking for the lowest cost because of limited resources,” Griffin adds.
Griffin points out the other biggest difference between younger and older generations is their expectation on how technology works.
“It’s been said that, for Baby Boomers, technology needs to be as simple as one, two, three. But for Gen Z, it needs to be as simple as one, meaning you don’t get a second and third chance if it doesn’t work immediately out of the gate,” he says.
Younger Farmers Taking Over the Buying Decisions
Farm Journal research found that of the younger producers coming back to the farm, they’re taking the biggest lead on managing finances and budgeting, as well as making equipment purchasing decisions, as well as decisions about conservation practices on the farm.
Griffin says whether it’s technology or other purchases on the farm, Next Gen farmers are often looking for the best deal and aren’t necessarily brand loyal.
“One of the things I’ve also noticed in ag retail is instead of selling a single product, they may sell a bundle of products and not just crop protection, or just chemicals. For the younger generation, who may not be wanting to be as detail oriented, they may have the option of buying inputs by the acre instead of by the jug,” he says.
Finding Ways to Make the Farm More Efficient
Finding cost savings on the farm, while being very efficient in what they do, Neiffer says Next Gen farmers are finding ways to work smarter not harder.
“They are willing to work hard, but they’re also willing to step back and say, ‘What can we do to make this job easier, more efficient?’ That’s versus maybe us in the older generation who are just going to muddle through and get it done or do it one way, because we’ve always done it that way,” says Neiffer. “I think this newer generation is finding ways to do some things differently and make their operations more efficient.”
From wanting instant feedback, to prioritizing family and watching their kids play sports, versus working around the clock, Neiffer says Next Gen farmers are hungry for information, and information that’s real-time. Whether it’s exactly how many bushels are going through their combine at any minute, the information and insights they get must be precise.
“These days, when you’re dealing with marketing a crop that’s, you know, $5 million or $10 million or more, having real-time accounting information at your fingertips is very important in order to make those informed decisions,” says Neiffer.
