Economic Impact

Timeline

The Past

The Present

The Future

The People

Resources

 


Public Policy In Agriculture

Influence of the railroads

With land to sell, the Northern Pacific Railroad made a determined effort to attract settlers. It sent representatives abroad to organize colonies of emigrants and distributed literature on Dakota. Dakota Territory established a bureau of immigration that also distributed literature.

Bank of North Dakota

The state-owned Bank of North Dakota was established in 1919. Farm loan program was established with the sale of bonds offering loans for longer terms under lower interest and more flexible repayment plans than those extended by private lenders. Tax levies were necessary from the beginning to cover service costs on the outstanding bonds, and the Bank of North Dakota program was forced into liquidation in 1934.

North Dakota Mill and Elevator

North Dakota Mill and Elevator began operating in 1922 as a value-added market for wheat produced in North Dakota. It is the only state-owned milling facility in the United States. With five milling units, the Mill now produces and ships 22,000 cwt. of milled product daily. In addition, the Mill ships over 7,000 cwt. of food grade bran and wheat midds daily.

Price supports

Government programs first encouraged farmers and ranchers to produce more. After surpluses began accumulating in the 1940's, the programs were designed to provide a safety net for farmers. The insurance provided by price supports allowed them to stop diversifying. The more they specialized, the more productive they became and the more they expanded their operations.

Fence-row to Fence-row

After worldwide crop failures, 1973 and 1974 offered a great market. The US Secretary of Agriculture was encouraging farmers to plant "fence-row to fence-row" and to "get bigger, get better, or get out." Farms and farmer's incomes were growing, but so was farm debt as the industry moved toward bigger and better machinery to work the increased acreage.

In 1980, a grain embargo on the Soviet Union decreased US ag exports. The bottom fell out of agricultural prices and land values. By 1982, net farm income, when adjusted for inflation, was lower than during the Great Depression.

USDA Secretary John Block implemented a payment-in-kind (PIK) program in 1983. PIK resulted in the third-largest acreage reduction ever.

By 1989, 30 million acres were retired under the Conservation Reserve Program of the 1985 Food Security Act.

The Extension Service

The first organizations to help farmers were set up as private groups. The Farmers' Cooperative Demonstration Group in Texas was established with private money in 1904 to help farmers with boll weevil infestation. USDA got involved to helped fight the weevil but also showed farmers how to diversify their crops. They demonstrated how rotation could stabilize their income and decrease weevil infestation. By 1911 about 600 agents were hired and boys' clubs were started.

The Smith-Lever Extension Act established the Cooperative Extension Service to distribute agricultural information. The experiment stations were the main source of information for the extension service. Many individuals did not see the need for such activity, but opposition died when World War I started and the demand for food increased.Experiment Stations

In 1949 The New York Agricultural Society set up a chemical lab to analyze crops and soils. The Maryland Agricultural College later set up the first experimental fields. In 1975 a Connecticut university established the first "regular experiment station." One of the station's main tasks was to analyze commercial fertilizer.
By 1899, there were 56 experiment stations in response to the public mood that agricultural progress was necessary. Over 2,000 farmers' institutes were held. Over 500,000 farmers attended in 43 states and territories. The Hatch Act provided funds to establish an agricultural experiment station in each state to work with the land-grant colleges.