These conditions may interfere with the ability to obtain and process information about farming and the household.
Capital is a constraint because the farm households must make monetary decisions ca the basis of meeting family needs rather than maximizing farm profit. That is, they make decisions designed to avoid high risk and consequent debt, and to provide income consistent with household demand throughout the year. Many spendonly if they have cash won hand." Cash transactions are preferred, because money represents immediate payment, and/or because bank-like transactions are neither trusted (they signify formal deb-t nor understood.
Despite the preference to avoid excessive debt, debt is a problem on most farms. One reason is the lack of records and
consequent ignorance of actual cash flow through the year. Record keeping tends to be done only for the most lucrative crops. Farm expenses are not separated from household expenses in most households.
Another reason relates to federal credit policies and land values. increasing land values, the result of migration into the region, improved the collateral farm households used towards obtaining low interest disaster loans offered by the government in the 1970s. Land prices are now dropping, and farm businesses and the government, realizing the severity of over indebtedness are raising interest rates and in cases reducing repayment periods. Private banks, once the primary lenders to farmers, are removing themselves from loaning to this-high risk group or restricting loans to the larger, 'more credit-worthy' farm operations.
Labor does not appear to be a universal constraint, as
family members are widely used and seasonal labor is available. In households where youth are few or absent, this situation forces farmers to hire labor or cut back production, concentrating, e.g.., on livestock, which has a lower labor requirement. Land is not a constraint for old-line farm units, but is for new farmers who pay full market value for it. Land is usually inherited within established farm families or
purchase arrangements made at low interest rates and long term payback periods. Land and cattle are a-major source of collateral for all farmers.
Exogenous Constraints
Two major types of exogenous constraints were identified -1) soils, with poor native soil fertility, low pH1, and associated low moisture holding capacity; and 2) infrastructural (largely market) limitations.
The region as a whole suffers from poor native soil
fertility and low pH1. The soils consist primarily of sands with scattered pockets of clay. Drought occurs in early suer and late fall, and spring winds additionally cause erosion. The presence of a plow pan is coon to many farms resulting in shallow root systems. This problem exacerbates the effects of drought and effectively lowers crop yield. During rainy