Wisconsin IDEA
Insight • Data • Economics • Analysis

How Off-Farm Employment Sustains Wisconsin’s Agricultural Families

Wisconsin Experienced a 24 Percent Decrease in Farms between 2002 and 2022

Farming is an integral part of Wisconsin’s economy, self-identity, and culture, a fact reflected in the names of two of the state’s three professional sports teams, the Green Bay Packers and the Milwaukee Brewers, which are both inspired by farming-related activities. Unfortunately, as highlighted in a recent analysis by Hadachek and Deller (2024) of the latest Census of Agriculture, the number of farms in Wisconsin has been steadily declining, dropping from 77,131 in 2002 to 58,521 in 2022. The decline in dairy farms is even more dramatic, decreasing from 16,886 in 2002 to just 6,216 in 2022. Several factors contribute to this trend, including the aging farm population and the high costs of starting a farming business for younger farmers. A critical reason for the decline is that many farms are unable to generate sufficient income to support a farm family or household.

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Econ Quiz: Banking Deserts

Beyond sponsoring little league teams and donating to community causes, local banks provide the credit and financial services that underpin a strong local business scene. When a bank branch closes, communities feel their absence keenly.

A recent study published by the Federal Reserve Board of Governors looked at the effect of bank branch closure on small businesses. The study found that if 25% of the bank branches closed within a roughly three-mile radius of the businesses they studied, employment growth at those small businesses was reduced by 2% within three years of the closures and by 4% within five years. If all of the bank branches within that three-mile radius closed, employment growth was reduced by 16% at the five-year mark.

These findings are worrying because small businesses are more likely to rely heavily on relationships with local bankers. Since 2010, the number of bank branches in the U.S. has decreased by 20%, and approximately one in three commercial banks has shut down. These closures are often correlated with reduced access to credit and financial services in the communities that were served by those branches.

In some instances, closures have resulted in “bank deserts” where there is a complete lack of physical bank branches. A census tract is considered a banking desert if there is no bricks-and-mortar bank branch within 2 miles of its population center in urban areas, 5 miles in suburban areas, and 10 miles in rural areas. A potential desert is a census tract with only one bank branch within these distances.

That brings us to today’s question. Wisconsin has not been immune to bank closures. In 2014, there were 1,132 banking deserts across the U.S., six of which were in Wisconsin. Have banking deserts grown or shrunk in Wisconsin? How many census tracts in Wisconsin were classified as banking deserts in Wisconsin? How many census tracts are potential deserts?

A. 6

B. 15

C. 21

D. 30

E. 56

Find Answer

Upcoming Events

Business Legal Clinic

Tuesday, October 8, 2024 | 11:30 am - 2:30 pm

The Rural Wisconsin Entrepreneurship Initiative in partnership with the Law & Entrepreneurship Clinic and CAP Services will host a legal clinic at Mid-State Technical College in Stevens Point on Tuesday, Oct. 8 from 11:30 am-2:30 pm. The clinic is meant for entrepreneurs and will cover the basics of business law. The clinic will begin with an hour-long presentation by Jeff Glazer, attorney and clinical professor at the Law & Entrepreneurship Clinic. Participants can then sign up for individual consultations with an attorney for the rest of the session.

These trainings are part of the Rural Wisconsin Entrepreneurship Initiative’s mission to help Wisconsin’s entrepreneurs start new businesses around the state. These events are supported by funding from Wisconsin Economic Development Corporation and the Wisconsin Department of Administration.

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From Our Partners

Learn Business FUNDAMENTALS

Entrepreneurs will learn how to start or grow their business through sessions focusing on different parts of business model development. Each session will have speakers who are business experts in the food and farming industry and/or Wisconsin food and farming entrepreneurs who will share their business stories.

Build Business CONNECTIONS

Entrepreneurs will connect with business consultants, service organizations, and other entrepreneurs through interactive sessions, networking activities, and through 1-1 conversations throughout the 2-day conference.

MARKET Your Business

Entrepreneurs have the opportunity to promote their business during the Entrepreneur Showcase session, and be able to speak 1-1 with hundreds of other entrepreneurs and business industry experts.

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Watch It Again

How Ready are Owners for Business Succession and Transition?

This webinar shares findings from a recent survey of small businesses in Minnesota that explored business owner awareness, attitudes, aspirations, and preparedness for transferring their business when the time comes. This webinar also discusses the importance of business succession and transition planning and highlights what community economic development practitioners can do to support small businesses with guest presenter, Michael Darger.

Watch It Now

In the News

Wisconsin businesses say high interest rates have slowed expansion plans

(Wisconsin Public Radio - 8/16/2024)

State income inequality on the rise, though slower than the national level

(WisPolitics.com - 7/15/2024)

Increasing share of total WI income going to top earners, report shows

(WisBusiness.com - 6/26/2024)

UW-Extension receives $1 million to help site solar and wind projects

(Capital Times - 6/15/2024)

Entrepreneurial Communities Conferences leads by example

(Institute for Business & Entrepreneurship - 6/5/2024)

Celebrate dairy industry and keep it strong

(Wisconsin Newspaper Association - 5/28/2024)

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Equal Employment Opportunity & Affirmative Action Statements

An EEO/AA employer, the University of Wisconsin-Madison Division of Extension provides equal opportunities in employment and programming, including Title VI, Title IX, the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act requirements. Please make requests for reasonable accommodations to ensure equal access to our educational programs as early as possible preceding the scheduled program, service, or activity.

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