The study is based on questionnaires mailed to 400 crop farmers in northwestern Minnesota and northeastern North Dakota in February 1999. Responses were received from 185 farmers, a 46 percent response rate. In addition, farmers in the study volunteered their farm business record information. The current financial stress of Red River Valley farmers is basically an income problem, but it has its roots in several aspects of the farm business, including production, marketing and financing. Off-farm employment opportunities are a significant factor in improving farm survival in the Red River Valley region.
Many farmers say they typically sell grain without a contract.
About 49 percent of the 1998 grain crop was marketed without a contract. Based on information from Farm Credit Service officers and farm management instructors, the study found the level of financial and production management skills was a factor in determining which valley farmers experienced less variability in financial performance. The level of management skills also was a factor in determining which farmers experienced greater uncertainty about the sustainability of their farm businesses. Financial support was provided by the Minnesota Institute for Sustainable Agriculture at the University of Minnesota in St. Paul. Back to Top 2001 gfherald News Tribune.