MADISON—With 50,000 fewer farmers and a 22.9% decrease in farm acreage since 1970, agriculture may no longer be the centerpiece of Wisconsin’s economy as it once was, but farms today are producing more efficiently than at any point in state history, according to a new report by the Wisconsin Taxpayers Alliance (WISTAX). A nonprofit, nonpartisan organization, WISTAX is dedicated to public-policy research and citizen education.

The number of farms in Wisconsin dropped from 200,000 in 1935 to 76,500 today, and total farmland decreased from 20.1 million acres in 1970 to 15.5 million acres in 2004. Total agricultural output for the state has increased from $912 million in 1970 to $3.36 billion in 2004, though the 1970 figure represented 4.5% of Wisconsin’s gross state product (GSP), while in 2004, it accounted for just 1.6% of GSP.

Despite shrinking farmlands, yields for milk, corn, and soybeans are up more than 80% since 1970. The number of cows decreased 31.9%, from 1.81 million in 1970 to 1.24 million in 2005, yet total milk production increased 24.0% in that period. Milk production per cow jumped 81.4%, from 10,200 pounds per year to 18,500 pounds.

Productivity for some crops equalled or surpassed the growth in diary. Corn yields increased 80.5%, from 82 bushels per planted acre in 1970 to 148 bushels per acre in 2005. Soybean yields are also up 83.3%, from 24 bushels harvested per acre in 1974 to 44 bushels per acre in 2002. Increases are attributed largely to improvements in technology, research that has spawned improvements in the agricultural process, and the removal of barriers that inhibited the spread of new technologies.

As a share of the state’s total agricultural sales in 2002, milk and dairy comprised 47.1% ($2.7 billion). Wisconsin is second only to California in total dairy sales. The state also led the nation in sales of cranberries (58.6% of U.S. total) and mink pelts (29.6% of U.S. total) in 2005, and it was among the leaders in sales of oats (2nd), maple syrup (4th), tart cherries (5th), honey (8th), and corn (9th).

Though Wisconsin is one of the nation’s most consistently productive agricultural states, farm incomes have not kept pace with inflation. One reason, noted WISTAX, is constantly changing commodity prices, which make agricultural income unstable from year to year. Since 1970, when adjusted for inflation, milk prices have fallen 32.2% and corn prices 73.2%.

As recently as 2004, farm income was the second highest in state history, but other years saw large declines in income—such as a 54.8% decrease in 1983 and a 40.2% decrease in 1988. Overall, farm earnings have increased 152.6% in the past 35 years, but the cost of living has increased faster.

With such volatility, Wisconsin farmers are increasingly working off the farm. Of all principal operators, more than half (54.8%) took at least some off-farm work in 2002, compared to 46.5% in 1974.

Despite its challenges, agriculture remains very much a part of Wisconsin life. The WISTAX report identifies three trends emerging as significant to the future of agriculture in the state: the Internet, renewable energy, and land use.

Over one-third of Wisconsin farms (34%) used the Internet for farm activities in 2005, up from 19% in 1997. Farmers conduct auctions, track commodity prices, purchase fertilizers, and acquire new technologies or techniques online. By using computers, farmers can access information and run their operations more efficiently.

Renewable energy may be a boon to Wisconsin agriculture as well, WISTAX suggests, if the growth in ethanol production continues. In 2004, 12% of U.S. corn was used for ethanol. By 2015, almost one-quarter of all corn harvested in the U.S. is likely to be needed for ethanol production, and Wisconsin corn could be a part of that development. Increased demand for corn may bring a similar increase in its price.

Wisconsin’s diminishing rural areas make land use a third major issue. Farmers may come together in a more coordinated statewide effort to protect farmland from overdevelopment, while still allowing rural counties to grow economically.

The WISTAX report was prepared as a contribution to a multiyear effort led by the Wisconsin Academy of Sciences, Arts and Letters. The Academy’s project, "The Future of Farming and Rural Life in Wisconsin," culminates with its statewide conference on May 14-15, 2007, in Madison. The report was partially underwritten by Kikkoman Foods Foundation, Inc., of Walworth, Wisconsin.

For a free copy of The Wisconsin Taxpayer, "Wisconsin Agriculture: Then and Now," write to WISTAX, 401 North Lawn Ave., Madison, WI 53704-5033; e-mail wistax@wistax.org; visit www.wistax.org; or phone 608.241.9789. o