We own two small farms in the Omaha area. These places do not contribute to our household incomes. We have been subsidizing these farms for years because they are too small to compete in today’s conventional and specialty commodity markets. We have lots of company!
The USDA defines small farms as those earning less than $350K annually. They make up 86 percent of the 1.9 million working farms in the U.S. but capture just 17 percent of the total gross farm income (USDA charts 7 and 8) accessed 2-14-2026.
Rather than go out of business or continue to subsidize money losing farms, we are inviting our neighbors and other landowners in the Omaha area to combine nearby farms to form efficient “regenerative production units.” As used here, a production unit is a group of contiguous and nearby farms leased by the owners to one operator.
Managed farmland consolidation, using local production units, is essential to the health and welfare of families that still own and operate smaller farms. These low-cost companies will save a good deal of money for landowners who want to stay in business by increasing efficiencies without buying or selling land.
As it is now, unmanaged consolidation and land speculation have driven up land prices and turned millions of smaller farmland owners into low paid farmhands. However, big farmers and food companies are not the direct cause of small farm failures. In my view, small farms are unprofitable because they cannot deal with ever changing public policies, new technology, and consolidation in banking and finance. This system will not change.
Our duty to our families and farm communities as smaller farmers and farmland owners is to work with our neighbors and trusted local investors is to scale up our operations while retaining ownership of productive farmland – the most valuable asset on earth.
New Local Companies
Adapting to unmanaged consolidation requires two types of local companies, farm corporations and incorporated production units. Briefly, farm corporations will help landowners decide who will run the farm now and, in the future, how farm profits are distributed to non-operating family members (the shareholders), and who will represent the farm on the production unit board. Production unit bylaws will govern how the unit operator is selected and define the duties of the operator and board members.
However, landowners who are interested in production units can deal with legal structures if and when they decide to organize a unit. To begin, I am scheduling landowner meetings to discuss costs and benefits. If there is sufficient interest, my business partners will prepare preliminary business plans at no cost to selected landowners.
Preliminary Business Plans
Because of differing soil conditions and capital costs, each farm will have its own plan. To help ensure a stable land base for unit operators and a steady income for farmland owners, our business plans will include cost and income projections based on five-to-seven-year leases tied to prevailing market prices indexed for inflation.
Markets
Business plans will include estimated savings from lower chemical, irrigation, equipment, and labor inputs. Lower unit costs and more volume will position production units to negotiate better forward contracts for crops and livestock. Our preliminary plans will be based in part on informal contract discussions with buyers of conventional and specialty crops and livestock.
However, to avoid over dependence on commodity markets, these plans will also outline product and market research projects for food ingredients and finished foods that can be sold under farmer-owned brands to food manufacturers and to retail grocery customers, starting in the Omaha area.
Meetings with Landowners
To test landowner interest I am scheduling informal meetings with farmland owners in the Omaha area. If there is sufficient interest, we will prepare preliminary business plans, as described above.
Meeting with Farmers
Once the preliminary business plans have been approved, our partners will invite experienced farmers to discuss production unit management and marketing. Interested producers will receive business plan summaries. My business partners and I will review qualifications and recommend applicants to the landowners.
Without landowner consensus on the operators, production units cannot be organized.
Public and Investor Meetings
With preliminary business plans in hand and with our support, landowners and production unit managers will host public meetings with a goal of attracting local risk capital. We must earn the trust of qualified local investors who can sit at the same table with landowners and farmers.
Without production units and qualified local investors, unorganized landowners and farmers will continue to lose money in commodity markets. We cannot afford to take on more debt and rely on nonprofits to build a visible presence in nearby urban and suburban grocery stores.
With sufficient investor interest, preliminary business plans will be refined prior to contract negotiations. These negotiations will include landowners and farmers (with their local advisors) along with commodity buyers, direct sellers, and of course, investors.
Fees for Planning and Organization
Since production units are new, we will not charge planning fees in the early going. ROI for our company and its partners will come from a negotiated share of new farm income as determined by audited financial reports that go to landowners, farmers, and investors.
Community Economic Development
With new farm profits in mind, I am asking farm organizations, county governments, churches, and civic organizations to help publicize information meetings for landowners and farmers.
Page two on this website explains marketing and related issues in more detail. Page 3 summarizes my qualifications, introduces my business partners, and outlines my family history in farming.
Please contact me for an appointment.
Thank you.
Jim Steffen, President
Massena Corporation
402-317-2639
jim@massenafarms.com
Revised: 02-16-2026