2002 Annual Report
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2002 Annual Report Farm Foundation M i s s i o n Farm Foundation's mission is to improve the economic and social well - being of U.S. agriculture, the food system, and rural communities by serving as a catalyst to assist private and public sector decision makers in identifying and understanding forces that will shape the future. A Catalyst for Agriculture and Rural America Table of Contents Message from the Chairman and President 2 Staff Activities 16 Strategic Vision 3 Foundation Leadership 17 Priority Areas Bennett Agricultural Round Table 18 Consumer Issues 4 Farm Foundation Contributors 21 Environmental and 6 Financial Highlights 22 Natural Resource Issues Publications and Ele c t r onic Res o u rc e s 23 Globalization 8 New Technologies 10 Role of Agricultural Institutions 12 Rural Community Viability 14 1 II nn vv ee s s t t i i n n g g i n tt h h e e FF uu tt uu rr ee Dr. Ronald D. Knutson Dr. Walter J. Armbruster Chairman President Farm Foundation invests in the future of Change will continue. Farm Foundation is dedicated ag r i c u l t u r e, the food system and rural communities. to serving a diverse and changing food system, and For the last sixty-nine years, Farm Foundation’s the people and communities of rural America, by financial and human resources have focused on helping increase understanding of the numerous actions to improve the economic and social well- forces that will shape the future. Globalization, being of U.S. agriculture and rural people. In new technologies, and environmental pressures are recent years, we have invested approximately $1.5 but a few of these. In the process of change, many million annually in programs and prov i d e d government and program options will surface-the l e a d e rship and encouragement to hundreds of consequences of which will need to be thoroughly in d i v i d u a l s and institutions related to agriculture. analyzed and understood. Our focus is to identify these forces and to engage industry, government, The twentieth century was a time of rapid change academic and community leaders to bring new for agriculture and rural America. The number of insights to help shape the future. farms dropped by more than 70 percent. The a verage size of farms increased over fourf o l d . This year, Farm Foundation will embark on its first Productivity gains were fueled by the initiatives of capital campaign to increase our endowment and progressive farmers adopting new technology and broaden our base of financial support. We want to management practices. In 1900, over half of assure that when Farm Foundation celebrates its America’s people lived on farms and in small 100th birthday, we are well prepared to serve towns. Today, rural residents are only 20 percent of agriculture, the food system and rural communities the population and farmers are less than two of 2033 with the same vitality that has characterized percent. In 1900, farm family incomes were only a our initiatives for three generations. This annual fraction of their urban counterparts. Today, there is report highlights Foundation activities of the past essentially no difference between farm and year and points to new initiatives that continue our non-farm household incomes. Yet, farm subsidies investment in the future of agriculture, the food and increased government regulation continue system and rural communities. to be major concerns of farmers, agribusinesses and consumers. 2 S t r a t e g i c V ii ss ii oo nn Farm Fo u n d a t i o n’s Strategic Plan provides a Vision guiding vision to carry out our mission. The Plan Farm Foundation strives to be a widely recognized, identifies four broad Objectives and six subject- objective and respected catalyst to increase the matter Priority Areas for Foundation programs. p roductivity and competitiveness of U.S. The Plan is updated regularly so that our programs agriculture and improve the quality of life in rural continue to address current critical issues. America. We pursue our vision by focusing on the long-term perspective to promote understanding Program Objectives of relationships among natural resources, human Farm Foundation conferences, capital, technology, institutions and society. The seminars and workshops: Foundation is uniquely positioned to stimulate economic and social sciences research on emerging • Identify the forces of change topics, foster education programs drawing on those that will shape the future research results, and facilitate policy dialogue on • Stimulate research and education the public and private sector issues involved. that increase human capital • Foster informed dialogue to increase understanding of public issues and policies • Build knowledge-based networks for U.S. agriculture and rural people Priority Areas Farm Foundation programs target: • Consumer Issues • Env i r onmental and Natural Res o u r ce Iss u e s • Globalization • New Technologies • The Role of Agricultural Institutions • Rural Community Viability and Leadership 3 ConsumerConsumer IssuesIssues Nutrition, food safety, technological and During the past year we: demographic changes, and demands for conven i e n c e and other attributes in food products are changing Initiated a major effort to examine the costs and the way foods are produced, processed, marketed benefits of adapting identity preservation systems and accepted by consumers. Agriculture, agribusiness from farm to plate; and affiliated institutions, as well as related policy, are undergoing significant change. Worked with food industry analysts nationwide to explore emerging trends in the food retailing and Farm Foundation will focus its service industries; Consumer Issues programming to: Collaborated on two Washington, D.C., symposia Examine the ways consumer food consumption and a related congressional staff briefing on habits are influenced and changed by health prominent issues in developing the 2002 farm bill; concerns, food safety issues, and new technologies, and how information about consumers’ preferences C o s p o n s o red a congressional briefing on how get communicated to producers and throughout people in rural areas will fare under changes in the food supply chain; welfare programs and food assistance policies; Analyze hunger, food security and poverty issues Partnered with the Southern Rural Development and their implications for society, agriculture, rural Center and USDA/Economic Research Service to communities and rural people; produce a series of reports on food assistance needs in the southern United States; Explore the way risk assessment is developed and used in food safety regulation and the impacts of Collaborated with Argonne National Laboratory, alternative regulatory approaches on production other federal agencies and the private sector in an a g r i c u l t u re, food processors, retailers and international conference on risk communications. consumers; and O ver 200 participants explored strategies for sharing new information and developing integrated Examine biotechnology and other efforts to approaches to solve environmental problems. produce foods that address specific health concerns and their impacts on production agriculture, the food supply chain and consumer well-being. 4 During the past year, Farm Foundation worked with food industry analysts nationwide to explore emerging trends in the food retailing and services industries. E n v i r onmental andand N a t u r a l RR e s o u r c e I s s u e s Water quality and quantity, waste management, During the past year we: e n d a n g e red species and other re s o u rce issues directly affect us all. The tie between animal Produced a booklet for use in extension and other a g r i c u l t u re and environmental quality is an educational programs to improve understanding of ongoing concern. Chemical use, tillage practices the changing concept of property rights in society; and sustainability issues will demand continuing attention. The role of regulations and voluntary Su p p o rted a national conference on the ro l e s incentives to meet environmental objectives will and impacts of regulations in farmland protection continue to be a major policy challenge. programs; Farm Foundation Programs: Worked with the Food and Agricultural Policy Research Institute (FAPRI) at the University of Examine the spectrum of relationships among food Missouri to develop an alternative methodology for and fiber production, environmental quality, calculating the expected impacts of the proposed sustainability of fragile ecosystems, and land CAFO regulations; use patterns; C o n vened a forum to showcase alternative Develop understanding of the changing concept of approaches to modeling agriculture and land use, public and private property in society as related to land use change, and fore s t ry activities that p roduction agriculture, natural re s o u rces and p re s e rve and sequester carbon and/or re d u c e environmental quality; and emissions of other greenhouse gases; and Explore the consequences of alternative public and Collaborated with the American Farmland Trust private sector approaches to natural resource policy Center for Agriculture in the Environment to plan and regulation. a three-year project that will produce methodologies communities can use to determine what constitutes critical mass for agriculture in their region. 6 The consequences of alternative public and private sector approaches to natural resource policy and regulation need to be explored. GG ll oo bb aa ll ii zz aa tt ii oo nn Trade agreements have significant implications for During the past year we: farmers, the food system, and rural communities. The impact of globalization is being accentuated Facilitated a workshop among U.S. and EU leaders by the restructuring of European, Mexican and in education, industry and government to reduce South American economies and by the emergence barriers to trade and business development; of robust economies in the Pacific Rim, Asia and parts of Africa.