Producer (agriculture) facts for kids

Producer is a word you might hear a lot when talking about farming in the United States. It generally means someone who operates a farm. But farming today can be a bit complicated, with different people owning land, renting it out, or sharing crops. Because of this, the government has a special way of defining a "producer" for certain farming programs.

What is a Farm Producer?

A producer is usually seen as the person who runs a farm. They are the ones who decide what to plant, how to grow it, and when to harvest. They also take on the risks that come with farming, like bad weather or low crop prices.

Why the Definition Matters

The way a producer is defined is very important for government programs that help farmers. These programs offer support and payments to help farmers succeed. To make sure the right people get this help, the rules need to be clear about who counts as a producer.

The 2002 Farm Bill's Definition

A farm bill is a big law passed by the U.S. government every few years. It sets the rules for many things related to farming and food. The 2002 farm bill (a law passed in 2002) gave a clear definition of a producer for its programs.

According to this law, a producer can be:

• An owner-operator: Someone who owns the farm and also works on it.
• A landlord: Someone who owns the land and rents it out.
• A tenant: Someone who rents land from an owner to farm it.
• A sharecropper: Someone who farms land owned by another person and pays rent with a share of the crops they grow.

For any of these to be considered a producer, they must share in the risk of growing a crop. This means they could lose money if the crop doesn't do well. They must also be entitled to a share of the crop that is produced on the farm.

Who Gets Farm Program Benefits?

Farm program benefits are types of support or payments from the government to help farmers. These are often called subsidy payments.

• If a landlord rents out their land for cash (they get a set amount of money, no matter how the crops do), they are usually not considered a producer. This means they cannot get these special subsidy payments.
• However, if a landlord gets a share of the crops as rent (for example, they get 25% of all the corn grown), then they are considered a producer. This is because they share in the risk of the crop, just like the farmer who planted it. If the crop fails, they get less rent.