The agriculture industry: is it growing?
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Agriculture, forestry, and fishing, one of our largest industries, employed about 2.1 million workers in 2004. This
number includes self-employed and unpaid family workers (almost half of the workforce). Most of these self-
employed—about nine out of ten—were employed in the agricultural products sub-sector of this industry. Therefore,
this week, we will concentrate on what's happening in the agriculture industry and leave the analysis of forestry and
fishing to later articles.
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Even though the single most common occupation in agriculture
is that of farm worker (46 percent), the agriculture industry
contains a large enough range of occupational specialties
to satisfy the career goals of most persons looking for re-
warding work. Occupations within this industry vary from
inside jobs as accountants, bookkeepers, auditors, secre-
taries, and clerks, to outside jobs in agricultural sales,
brokers, farm managers, inspectors, crop chemical application
advisors, veterinarians, truck drivers, and farm equipment
operators.
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Even though unpaid family workers remain a significant part of the workforce in the agriculture industry, a relatively
small number do bookkeeping, purchase supplies, or arrange the sale of crops, or livestock
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So what's happening with farm occupations? What can we expect between 2004 and 2014?
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Overall, occupations within the farm industry are in decline. Except for persons occupied as a farm, ranch, or some
agricultural related manager, an animal trainer, or a non-farm animal caretaker, the outlook for a person considering
a career in farming is bleak. The chart below, compiled by the U.S. Department of Labor, Bureau of Labor
Statistics, lists the expected growth and decline in various agricultural occupations. Most of the occupations are
shrinking.
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Employment of wage and salary workers in agriculture, forestry, and fishing by occupation, 2004 and projected change, 2004-14 (Employment in thousands)
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Outlook:
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Numerous farms are expected to go out of business over the next decade because prices for many agricultural
goods are low, a situation that has two primary causes:
- U.S.farms continue to produce more than is needed to meet domestic and export requirements. Increasing
productivity means that it takes less farm labor to produce crops and livestock than in the past.
- Market pressures on the family farm will continue to drive consolidation in the industry, as farms become bigger
and more likely to be controlled by large corporations.
The decline in employment will be fastest, at 21 percent, among self-employed and unpaid family workers, most of
whom are farmers and their families. Employment of wage and salary workers is expected to decline by 5 percent
compared with 14 percent growth for all industries combined.
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Employment on many farms will most likely continue to be characterized by low wages and lack of benefits.
Employment of farmers and ranchers is projected to decrease, but increase for agricultural managers. The number
of farm workers is expected to decline as technology replaces some manual labor. The same is true for the
occupation of graders and sorters.
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Employment declines, however are being moderated by other changes taking place in agriculture. New
developments in the marketing of milk and other agricultural produce through farmer-owned and operated
cooperatives hold promise for some dairy and other farms.
Furthermore, demand is growing for organic farm produce—grown to a large extent on small to medium-sized farms.
The production of crops without the use of pesticides and certain chemicals is allowing farms of small acreage to
remain economically viable—which only 12 years ago appeared to have almost no future as working farms.
Also, some Federal, State, and local government programs provide assistance targeted at small farms. For example,
some programs allow farmers to sell the development rights to their property to nonprofit organizations pledged to
preserving green space. This immediately lowers the market value of the land—and the property taxes levied on it—
making farming more affordable.
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Earnings:
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In 2004, median earnings for workers in the agriculture, forestry, and fishing industry were $417 a week, with a wide
range from less than $248 a week for the lowest 10 percent to more than $915 a week for the highest 10 percent.
Lower than average earnings are due in part to the low level of skill required for many of the jobs in the industry and
to the seasonal nature of the work.
Farm income can vary substantially depending on a number of factors, including:
- The type of crop or livestock being raised, price fluctuations for various agricultural products.
- Weather conditions that affect yield.
- Government subsidies may supplement a farmer’s income.
For a growing number of farmers and ranchers, particularly those working on farms for residential and lifestyle
reasons, crop or livestock production is not their major occupation or source of income.
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Source for all of the information quoted above: U.S. Department of Labor, Bureau of Labor Statistics
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In the next issue: Tomorrow's Jobs
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