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Show UTAH FARM BUREAU Page 4 NEWS i- - Many of us fear that in the future nonagricultural corporations may dominate agriculture. We have seen a rapid growth of mergers in the corporations that purchase and process our farm products. There also has been a decline in the number of suppliers of the farm inputs we use on our farms. Recently many large corporations have entered new areas and have purchased business organizations with operations quite unlike the parent company. These new economic giants are called "conglomerates," one corporation may build airplanes, own a hotel chain, process soybeans, produce machinery, and operate farms. We have had antitrust laws for many years but they have not been as effective as many of us think they should be. Because these conglomerate corporations operate in so many fields there is little control of their operations under existing laws. SHOULD WE BE CONCERNED ABOUT NON-AGRICULTUR- ...TK There are those who believe that the next move of these huge corporations will be to purchase large tracts of land which they will operate as an integrated part of their larger operations. Studies indicate that a third of those now buying land are nonfarmers. Feed companies and food processors continue to experiment with schemes which would give them control of meat production from the farm to the consumer. Other corporations have plans to try their hand at farming. Others who have studied agricultural trends think that the threat of corporations taking over farming has been greatly exaggerated and that there is no immediate danger, from them. A recent survey made by the USD A of corporations having agricultural operations showed that 90 percent of all farms are still operated as sole proprietorships or partnerships and that most corporation farms are family owned. non-agricultur- al CORPORATIONS DOMINATING AGRICULTURE? USDA SURVEY OF CORPORATIONS HAVING AGRICULTURAL OPERATIONS In 1967, Secretary of Agriculture Orville Freeman directed the Economic Research Service of the USDA to conduct a survey to determine the number, kinds, and general characteristics of corporations that were directly involved in the production of farm products. Concern had been expressed over the apparent increase in the number of non farm corporations reported to be buying land and initiating new farming enterprises. A preliminary report, "Corporations Having Agricultural Operations," was released in August 1968. It summarizes inventory-typ- e data for 22 States and similar information for 28 other States will be released later. A total of 6,703 farms operated by corporations were found in the 22 States in early 1968. This included all farms and ranches in active production, as well as feedlots, chick hatcheries and egg farms. They represented less than 1 percent of the farms and about 7 percent of the land in farms. These corporation farms accounted for about 4 percent of the cash receipts from farming in the 22 States. About 40 percent of the corporate-ru- n farms had gross farm sales in 1967 up to $40,000. Another 30 percent fell in the range, and gross sales of the top third exceeded S100,000. Corporate farms were concentrated in the Mountain States. They averaged 11,000 acres in size, they accounted for 40 per cent of the total number and 80 percent of the land in corporate- run farms. Individuals and families own s of all the corporations operating farms in the 22 states surveyed and the majority were engaged only in farming. It is evident that at the present time the family farm is the established method of carrying on agricultural activities in Utah and in the United States. f arms are increasing in size and every more year capital, land, inputs, and managerial ability are needed. There is a trend for more family type farms tobe incorporated. A new federal tax law S- - now extends most of the Subchapter of a general corporation to family businesses which advantages incorporate with no more than 10 stockholders. Families with large assets in farming are subject to high estate and inheritance taxes if the farm owner dies. Incorporating softens $40-$100,0- 00 four-fifth- |