The same technical and economic developments which allowed U.S. farms to specialize and grow larger are now the source of growing concerns for the environment and natural resource base. These concerns include: water quality, food safety, energy conservation, work safety, and soil quality. In one way or another, all of these concerns are related to mechanical and chemical technologies which allowed farmers to capture the economic efficiencies of specialized, mechanized, large-scale -- industrialized farming methods.

As farmers now begin to factor in the environmental costs of industrial farming methods -- both voluntarily and through regulation -- smaller, more diversified farming systems will become more economically competitive. The trend will not be "back" to farming systems of the past, but instead will be "forward" to an era of knowledge and information based farming, which by its very nature will tend to be smaller and more diverse.

The Industrialization of U.S. Agriculture

• Industrialization of U.S. agriculture was a natural consequence of strategies pursued over the past century to increase production efficiency.

• Industrialization succeeded in reducing labor -- the number of farmers -- required to feed and clothe the nation and in reducing costs of food and fiber to consumers.

• But industrialization required increased reliance of fossil fuels and commercial fertilizers and pesticides which are now the source of environmental concerns.

• Industrialization -- specialization, mechanization, simplification, routinization -- created economic advantages for large, specialized farming operations.

• The result -- falling food costs, rising environmental costs, and fewer, larger farms.

The Era of Environmental Concern

• Environmental concerns became major social and political issues in early 1970s.

• 'Point-source' pollution was addressed first -- smoke stacks and sewer pipes.

• Emphasis shifted to 'non-point-source' -- agriculture -- in late 1980s.

• Loss of soil productivity and sedimentation were major natural resource issues.

• Use of commercial fertilizers and pesticides were major environmental issues.

• Initial emphasis was on reducing environmental impacts -- reduced tillage, safer pesticides, integrated pest management, nutrient management, precision farming.

• But the inherent economic, social, and environmental sustainability of industrial farming methods has become a question of growing public concern.

Post-Industrial Era (Toffler, Drucker, Naisbitt, Peters, Reich, and others).

• Post-industrial era will be a knowledge/Information based era.

• Natural resources, capital, and means of production will be less important and therefore less limiting.

• Mass production and marketing will be replaced with "targeted, customized, niche," production and marketing. Mass customization is only a half step.

• Constant innovation and continual change will mark post-business society.

• Separate, sequential acts will be replaced with integrated, simultaneous systems.

• Industrial work: mechanical model -- Bigger is better.

• Knowledge work: biological model -- No one best size. Size follows function.

• Work of future is knowledge work -- substitution of "intensive" management and "thinking" workers for "extensive" management and industrial technology.

Opportunities for Small Farms

• "intensive" management -- more managers and more thinking people per dollar of capital per acre of land is just another way of saying "smaller" farms.

• Post-industrial era creates opportunities, but farmers will have to shift their thinking from industrial to a post-industrial model or paradigm for farming.

• Sustainability Paradigm: Goal is not just profit and growth -- but a balance of economic, ecologic, and social objectives to achieve a desirable quality of life.

Strategies for Small Farms in the Post-Industrial Era

• Be different. Don't go head-to-head with corporate agriculture. Do 'good' things they can't do. Don't do the 'bad' things they can't avoid.

• Market the "environment" rather than low cost. Produce in environmentally sound ways and develop markets with consumers who care about the environment. ("Green" markets are only a "half-step" toward "personal credibility.")

• Market quality rather than cost. Most consumers can afford to pay for fresh, high quality food. (On average, consumers spend only a dime of each dollar for food.)

• Expand vertically rather than horizontally. Nine cents of the dime spent for food goes for inputs and marketing services. Replace inputs with management. Reduce marketing functions and enhance value -- market more directly to local consumers.

• Market in the "niches." The smaller the "niche" the better. Smaller farms make up 85% of total farmers but produce only 15% of total production. Need to find niches for only 15% of production to provide markets for 85% of all farmers.