Off-Farm Income Increasingly Important for Agriculture & Rural Economy

Off-Farm Income Increasingly Important for Agricultural & Rural Economy Source: grainnet.com

U.S. farmers’ and ranchers’ increasing dependence on off-farm employment and income reveals the growing economic interconnection of rural communities and surrounding cities.

According to a study by researchers at the University of Missouri, 82 percent of U.S. farm household income now comes from offfarm sources. The study was commissioned by CoBank and completed in partnership with CoBank’s Knowledge Exchange.

Most farmers cited reliable income as the top reason for off-farm employment, as onehalf of farm households have negative farm income in a typical year. Health and retirement benefits were also cited as keys reasons for off-farm jobs within farm households.

Among the study’s key findings is that rural communities have increasingly diverse economies, and success within a rural community’s agricultural sector is largely dependent on other sectors of the regional economy at large. Today, only 6.5 percent of workers in rural counties are employed in agriculture, compared to 15.4 percent in 1970. The largest single source of employment in rural areas is the service sector, which accounts for 57.4 percent of all jobs. The majority of residents in farm-dependent counties are commuting to jobs outside of their home counties. As a result, rural and urban communities have grown economically closer as workers and businesses engage with each other across multiple counties.

“The rural economy has become more diverse and more complex than it was even 15 years ago,” said Dan Kowalski, vice president of CoBank’s Knowledge Exchange. “What that means for those of us who serve rural communities is we have to evolve our understanding of what fuels rural economies and what these communities need to succeed and thrive. In many cases, the historical concept of ‘rural’ no longer applies.”

The 2019 population of non-metro, or rural, counties was 46 million, or 14 percent of the U.S. population. Most of that population, 30 million or 65 percent, lived in counties adjacent to metro areas. The close ties between metro and non-metro counties reflects how the nation’s urban and rural communities have grown economically, and geographically, closer over the past 50 years.

Population loss has been a challenge for counties that have remained farm-dependent and have been less able to diversify their economies. Counties that were farm-dependent in 2015 had seen population decline by four percent from 1974 to 2019, on average. Conversely, counties that were not farm-dependent in 2015 had grown 55 percent in population over the same period.

Off-farm jobs are especially critical for young and beginning farmers as they build

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their businesses. Debt-to-asset ratio analysis and other research shows that off-farm jobs reduce financial risks, which is especially important for younger farmers who face higher debt needs as they grow their business.

The study concludes that economically resilient rural communities have regionally connected workforces and diverse industries to support a range of employment opportunities. These communities are better positioned to sustain young farmers and principal operators alike.

Read the report at: https://www.cobank.com/ knowledge-exchange/general/the-importance-of-offfarm-income-to-the-agricultural-economy ▫ Editorial Calendar

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The 2022 Capital Projects General Obligation Bond Act would issue nearly $216 million in general obligation bonds for institutions of higher education, special schools and tribal schools in New Mexico. The bond issue request includes $51.1 million for campuses across the New Mexico State University system, including $22.5 million for engineering facilities and $15.5 million for nursing, health and education facilities at its Las Cruces campus. NMSU-Grants and Doña Ana Community College would also receive funding for campus-wide infrastructure improvements, renovations and equipment. The New Mexico Department of Agriculture, which is headquartered at NMSU’s main campus but serves the entire state of New Mexico, would receive $10.5 million to replace its outdated headquarters facility. A separate bond issue for libraries will provide $6 million statewide for university library resources, of which the NMSU system will receive a portion.

Project Summaries

Thomas & Brown Hall Replacement: The 50-year-old Thomas & Brown Hall will be replaced and modernized to expand student-centric and experiential hands-on learning facilities for students from across campus. The project will foster research opportunities through multi-disciplinary lab space for student projects and faculty collaboration. The new design will also include a Learning Community designed to enhance student success. ($22.5 million) Health and Social Services Building and O’Donnell Hall Renovations: These two buildings house most of the departments in the newly created College of Health, Education and Social Transformation, which includes the previously separate colleges of Education and Health and Social Services, as well as the Department of Sociology. Renovations will help consolidate and integrate some departments that are currently housed in multiple locations and create more state-of-the-art multidisciplinary smart classrooms. The project will provide capacity for planned growth in disciplines like nursing and kinesiology. ($13.5

million)

Nursing Skills and Simulation Center Expansion: The expansion and modernization of the Nursing Skills and Simulation Center will directly address the nursing shortage in New Mexico. The state has a shortage of more than 6,200 registered nurses and clinical nurse specialists. The renovation will establish an operating room suite to be dedicated to the nurse anesthesiologist program and free up classrooms currently being used as lab space. ($2 million) New Mexico Department of Agriculture Renovation, Phase 3: The New Mexico Department of Agriculture is headquartered at New Mexico State University but serves the entire state of New Mexico. Previous phases of this project, funded by severance tax bond and general fund appropriations, are expected to be complete in August 2022. Phase 3 will include replacement of the outdated original NMDA main building with construction of a new administrative facility to address statewide needs, including space for additional regulatory, Healthy Soil Program, and Food, Farm and Hunger Initiative staff. The new building and site infrastructure improvements will meet current codes for life safety and data, electrical, and mechanical utilities. ($10.5 million)

Other Projects

¨ Infrastructure improvements and roof replacement at Doña Ana Community College in Doña Ana

County: $1.35 million ¨ Renovations, infrastructure improvements and roof replacement for Martinez Hall at NMSU-Grants campus in Cibola County: $1.25 million

Passage of the GO Bond will:

Help address our state’s nurse and educator shortages: With new state-of-the-art equipment for the nursing skills and simulation lab and state-of-the-art multidisciplinary smart classrooms for the College of Health, Education and Social Transformation, we can attract and retain students interested in becoming nurses, public health experts, and teachers. Investing in New Mexico students will set them up with the skills and experience needed to serve their communities right here in New Mexico.

Help shape New Mexico’s future workforce: The key to New Mexico’s economic long-term stability is to attract high-tech industry. The space industry and the energy-water-food nexus are top priorities, and NMSU is an essential part of the labor equation. Economic expansion depends on a highly trained and available workforce that includes a wide variety of disciplines working in concert to solve critical issues and support workforce development. By fully reimagining the design and function of Thomas & Brown Hall, the College of Engineering is poised to nurture cross-disciplinary, collaborative, and distance learning to promote the success of students from all over NMSU.

Support the needs of NM’s agriculture industry: The new and modernized New Mexico Department of Agriculture facility will provide additional space for new programs and initiatives. It’s key to NMDA’s mission of promoting a fair marketplace, food protection, marketing and economic development; supporting the beneficial use and conservation of natural resources; and working cooperatively with the public and private sectors.

Areas of Investment

Nursing, Health & Educator Training: The College of Health, Education, and Social Transformation is vital to improving health and education in the region and conducting community-based research. The College of HEST programs focus on medical education, interprofessional education, and joint degree programs with Burrell College of Osteopathic Medicine. Cross-disciplinary Teaching & Research: Reconfigured facilities, lab spaces, and experiential learning spaces will create new opportunities for collaborative, multidisciplinary teaching and research, allowing faculty to leverage academic partnerships to seek additional grant funding, moving NMSU ever closer to its strategic goal of becoming an R1 institution. Support for New Mexico’s Agriculture Industry: The New Mexico Department of Agriculture’s mission is vital to the profitability of New Mexico’s agricultural industry as it feeds tomorrow’s global population, estimated to increase by 70% in the next 30 years.

Important Dates

Election Day: Nov. 8

Same-day voter registration available

Absentee voting: Ballots mailed beginning Oct. 11 58 OCTOBER 2022 Early in-person voting (Government Center): Starts Oct. 11

¨ Higher education is a "full partner" in the revitalization of New Mexico's economy. ¨ There will be no tax RATE increase if the bond passes. It is not a new tax or an increase in the rate of the existing property tax. ¨ For most public colleges and universities, the GO Bond is our ONLY opportunity to receive enough funding to renovate their facilities, upgrade IT and safety systems, etc. ¨ New Mexico's students need and deserve good, modern facilities in which to study and learn. ¨ Up-to-date colleges and universities encourage New Mexico's best and brightest students to get an education in state, helping to avert a “brain drain.” ¨ The GO Bond will bring $215 million into the state, creating more than 2,000 construction, architecture and related jobs and increasing gross receipts tax income to state and local governments.

¨ Funding from the Bond will allow NMSU to fulfill our obligation of stewardship by caring for existing state-owned facilities.

Countering Opposition Questions

Q: Why should we support GO Bond 3 when we're already giving money to colleges and universities through the Opportunity and Lottery Scholarships?

A: The Opportunity Scholarship, which became law in July 2022, provides money for qualifying adult students to get an education at a four-year or community college. It is available to working adults who may have started and not finished college or working adults who want to complete specialized training in a trade or earn a college degree. The Lottery Scholarship was established in 1996 to provide high school graduates with funding to pay part of the cost of attending community college or a four-year public college or university full-time.

GO Bond 3 is ONLY designed to provide public colleges and universities with funds to renovate existing facilities; replace old, outdated facilities with new facilities; or upgrade campuses with new technology or safety enhancements. It does not provide funds to students. GO Bond 3 funds are intended to make colleges and universities safe places to learn that are competitive with public colleges and universities in other states. The funds cannot be used for any purpose other than projects listed in the legislation that authorized the bond question to be put on the ballot.

The goals are to: 1) maintain the public colleges and universities taxpayers have already invested in; and 2) graduate professionals with in-demand skills who will stay in New Mexico and contribute to our state's future.

Q: Why do colleges and universities need to invest in their physical facilities when more and more college programs are going online?

A: Many degrees and certificates (healthcare, trades, technology, etc.) REQUIRE a blend of classroom, laboratory and/or hands-on learning as well as online instruction. Also, some students learn more effectively in a classroom than an online setting, so it is important to provide options. In addition, many public colleges and universities offer meeting and performance spaces to groups throughout their communities.

Q: Why should we invest in colleges and universities when enrollment is declining?

A: The reasons for declining college enrollment include declining birth rates, the widespread immediate availability of jobs, and greater public skepticism of the need for higher education, but the potential long-term effects of this decline could be disastrous. People without education past high school are more likely to live in poverty and less likely to be employed. They're more prone to depression, live shorter lives, divorce more frequently, and vote and volunteer less often. With fewer people going to college, society is going to be less healthy. It will be harder to find people to fill the jobs we need in the future and it will be harder for innovation to occur. The bottom line is that if Americans keep choosing not to go to college, the U.S. will continue its economic slide. (Source: https://www.washingtonpost.com/education/2022/01/22/college-enrollment-drop/)

Q: You say no increase in property tax rates. How are you funding GO Bond 3 without increasing property taxes?

A: The 2022 GO Bond to support higher education is tax neutral, as verified by the State of New Mexico Department of Finance and Administration. These bonds are a replacement of general obligation bonds for higher education that are expiring or have already expired.

Q: If GO Bond 3 fails to pass, will our property rates go down?

A: If GO Bond 3 fails to pass, there is no guarantee property tax rates will be reduced, nor will it give the State of New Mexico the ability to use this money for other purposes. The last time the GO Bond for higher education failed was in 2010. After that election, we could not find evidence that property taxes decreased in any county in New Mexico.

Q: How does the GO Bond benefit New Mexico's economy?

A: Research shows the bond will create about one (1) job, on average, for every $100,000 in funding in architecture, construction and related fields. Therefore, this year's bond funding of $215,560,000 will create an estimated 2,156 jobs. People who renovate or build facilities or provide services contribute to the economies of the communities where public colleges and facilities are located in by eating, staying in and purchasing goods and services in those communities. Plus, communities and counties benefit from increases in gross receipts taxes.

Important Dates

Election Day: Nov. 8

Same-day voter registration available

Absentee voting: Ballots mailed beginning Oct. 11 59 OCTOBER 2022 Early in-person voting (Government Center): Starts Oct. 11