Small rice producers struggle with low prices, large operators

By MONETTE TAYLOR | Country World South Central

June 21, 2001 -- "You're either going to be a good-sized farmer, or you're not going to be a farmer at all," said Tommy Mozisek of Edna.

At a time when small farmers are finding it harder and harder to compete in the markets, Jackson County producers continue to lose the battle with low prices and larger operators.

"Rice is falling off fast. Not nearly as much rice as there used to be," said Mozisek. "The reason is the economy, the water situation and it's an expensive crop. The government programs have fallen, and it's a high dollar crop."

According to reports from the June USDA Economic Statistics report, "...the total use for 2001/02 remains projected at 198.9 million cwt, down almost 3 percent from a year earlier as expanding domestic use is more than offset by weaker exports."

"I guess the biggest complaint the producers have, right now, is the low commodity prices. The cost of equipment, fuel...their inputs...continue to rise and their commodity prices continue to fall.

"I know a lot of people like to complain about government subsidies, but if it weren't for that, we wouldn't have agriculture, because somebody has to make up that difference if the market doesn't. I mean, you can't spend two dollars to produce a crop and get one dollar back...it's just simply economics," said Kermit Harton, Jr. , a farm implement dealer in Jackson County.

According to Harton, while the sale of large equipment continues to be doing well in and around Jackson County, there have been several repossessions in the past few months. Also, the sale of used equipment has fallen off due to shrinking number of small farmers who were the primary buyers. Now, part of the used equipment is being sold down in Mexico, and they are glad to have it.

While rice has been a money crop in years past, with the present economy, most farmers in the area are planting more corn, milo, cotton and soybeans, according to Mozisek.

"There's just no demand for rice anymore. The mills are going broke. They can't make money at it because the foreign market is just killing us," he added.

"You know, you can make a lot of money, but you've got to have a lot of money to do it. It's a lot of work."

"A lot of the situation is the landowners taking the payments (government subsidies) and putting the farmer off the farm. Because, economically, they can do better just to take the payment than to grow a rice crop. They can just take the payment and not have to farm," said Harton.

"If something doesn't change, at some point, we're going to have no rice farmers in Jackson County. It just keeps decreasing," said Gary Harton of Edna.

According to the Hartons, one thing that is helping farmers, right now, is the price of cattle, since a lot of the producers raise cattle, too. After a few years of low prices, the going rate for cows and calves has risen and enables producers to continue raising crops.

Supply and demand, along with the foreign markets dictate the price of crops, and the Hartons and Mozisek are in agreement that it takes about 1500-2000 acres...per producer...to make a decent living.

"There are operations where there's a father and a son or two sons that farm quit a bit of land. They use big equipment and they do most everything themselves. They seem to be doing pretty well. It's the smaller farms that are really starting to drop off," said Kermit Harton.

"If a person goes out there and does his job and gets a little help from Mother Nature, they'll usually do fine. It's the ones who don't go out there..."the windshield farmers"... that drive around and look at it and have low, hourly wage people out there doing it for them, and they aren't double checking that are having trouble, too," said Mozisek.

As farming changes in Jackson County...along with other area counties...producers will continue adjusting their production and lifestyles to meet their families' needs.

"The landowners average $30-$40 more an acre (accepting subsidies) than letting a guy farm. But, what they have to understand is at some point, they (government) just may stop, and they'll be looking for farmers, again.

"What if there are no rice farmers left? Then, what do you do?" said Harton.