Situation and Future Directions of Farm Management in the USA

U.S. farmers are making significant adjustments in response to the severe financial crisis that impacted on them in the 19 80's. Net farm income reached an all time high in 1987. However, the strong possibility of declining government subsidy payments and the growing interlocking of U.S. farm prices with world prices, places great uncertainty on future levels of farm income. U.S. farmers have made significant reductions in production costs. They are likely to continue making changes in production practices in their effort to further cut unit production costs and be competitive in international markets. Risk management is becoming of growing importance for U.S. farm managers. Government programs and policies in the environmental and conservation areas will increasingly influence how farm businesses can be operated. Improving management skills and use of advanced management tools is critical as the guality of management input will be an even larger determinant of successful farming results.