Our society and the agricultural community have been through many changes over the years, but the goals of the county fairs remain consistent today ... providing a family oriented show dedicated to education, entertainment and fellowship to all.

These county fairs serve as one of the few remaining links between farm and nonfarm residents. Today, fewer than 2 percent of our population is a farmer. With the majority of the public at least three generations removed from actual farm life, the county fairs are more important than ever before. More often than not, education and communication with each other can avoid basic misunderstandings. Too often, nonfarm residents are ready to lay blame on the farming sector for a problem or concern that is unwarranted. On the other hand, farm residents must realize the need to get along with and positively promote their occupation to nonfarm residents.

While the decline in the number of farms will continue, the remaining producers will strive to meet the needs of tomorrow's society. Farm and nonfarm residents will need to co-exist more in the years to come, and the county fairs will provide an avenue for such interaction.

Locally, we have the Butler Farm Show currently under way through Saturday and the Hookstown Fair Aug. 19 through 23, or you might just want to stop in at the Big Knob Grange Fair, which will be held Aug. 26 to 30 in Rochester, Beaver County. To locate a fair near you, log on to the Pennsylvania State Association of County Fairs at www.pafairs.org.

Cause and extent of farm 'exits'

A report by the U.S. Department of Agriculture's Economic Research Service notes that U.S. farm numbers have been relatively stable between agricultural censuses in recent decades, "but beneath the surface, farming is a much more dynamic industry than the farm count indicates." The relatively small net change in farm numbers masks substantial turnover in farms. In fact, says ERS, about 717,100 farms in the U.S. went out of business — or exited — between 1992 and 1997. But the total number of farms declined by just 13,400 because the number of entries (703,700 farms) nearly equaled exits.

On an annualized basis, U.S. farm exit rates are 9 to 10 percent, or within 1 percentage point of exit rates for all U.S. small, nonfarm businesses with no employees. These rates also are comparable to exit rates for Canadian farms and businesses in other countries.

In studying farm exits, ERS researchers looked at two fundamental drivers: farm size and operator age. Among other things, the study found that:

n Exit rates decline as farm size (measured by sales) increases.

• Nevertheless, exit rates still are 6 to 7 percent for large farms (sales of $250,000 or more).

• The exit rate initially declines with age until it reaches 8 to 9 percent for farmers between 45 and 54 years of age.

• The rate then increases and peaks at 12 to 13 percent for farmers who are at least 65 years old.

Researchers say that understanding farm exits is important for three reasons.

First, knowing which types of farms are most likely to exit might be useful to policymakers interested in the effects of exits on exiting farmers, the remaining farms and farm communities.

Second, exits help reallocate resources between farming and other economic activities and within the farm sector itself. For example, exits were substantially larger than entries between 1935 and 1974, and farm numbers during that period declined by 4.5 million. "This large decline resulted in a massive reallocation of labor from farming to other endeavors," says ERS.

Third, farm exits — and farm entries — may play an important role in introducing technologies and productivity growth, as in other industries. Older, exiting farmers tend to downsize their operations and disinvest as they age. Farms absorbing their land ¿¿ either recent entrants or surviving farms ¿¿ are more likely to use newer technology and a more efficient mix of capital and labor, says the report.

The study was based on information gleaned from the Census of Agriculture taken in 1992, 1997 and 2002. Researchers say they plan a future study that will examine the exit and entry of farms with annual sales of $1 million or more. In addition to looking at the exit and entry rates for farms of this size, ERS plans to examine how many started as small farms, how many started as large commercial farms, how many entered with sales of $1 million or more, and how long it takes smaller farms to grow to the $1 million level.

Focusing the analyses on "million-dollar" farms may seem restrictive because only 28,700 farms were that large in 2002, accounting for slightly more than 1 percent of all U.S. farms. However, ERS notes, "these farms accounted for 48 percent of farm sales," and understanding the dynamics of very large farms is important because of their large share of production.

Luke Fritz is executive director of the Butler County Farm Service Agency.