As noted in a prior post, “on December 30, the U.S. Census Bureau issued its official population estimates for 2019 showing, as expected, a slowdown in overall growth of population and reduced population in 10 states: New York, Illinois, West Virginia, Louisiana, Connecticut, Mississippi, Hawaii, New Jersey,Alaska and Vermont. In addition, the Census Bureau stated, “U.S. population is expected to grow 6.6% in the 2020s, a slide from 7.5% growth this decade” and “urban and rural areas across the country will divide further in the deceleration.”
The slow growth of U.S. population, as discussed in the prior post, is due to several factors: (1) the “U.S. fertility rate—the number of children each woman can be expected to have over her lifetime—has dropped from 2.1 in 2007 to 1.7 in 2018, the lowest on record.” (2) “Death rates, already rising because the population is older, have been pressured further by ‘deaths of despair’—suicide, drug overdoses and alcohol-related illness.” (3) U.S. immigration “has been trending flat to lower” and is subject to anti-immigration policies of the Trump Administration.
An editorial in the Washington Post notes that this may cause a positive reduction in the demand for resources. However, the reduced population growth “may mean less economic growth and a diminished support base for a large retired cohort” as well as a warning that “starting a new life in the United States has come to seem less attractive, both to prospective parents already living here and to prospective arrivals from abroad.”[1]
This, said the Post, “is a warning” that “the need for more [immigration] is real,” which “this country cannot afford to ignore.” [2]
Lower population growth is not the problem in rural America. Declining population is its problem. This situation recently was examined at the Regional Economic Conditions Conference of the Federal Reserve Bank of Minneapolis by Beth Ford, the CEO of Land O’Lakes, the Minnesota-based, member-owned agricultural cooperative.[3]
She said this population problem was exacerbated by problems in the agriculture economy. “Consolidation was happening across agriculture because of oversupply.” The average age of farmers was rising, and it is awfully difficult for young want-to-be farmers to get into the business, resulting in widows owning 60% of Iowa’s farmland. Many dairy farmers are surviving by taking jobs off the farm. Conventional corn and soybean farming will continue although the farming incentive structure will have to change over time. “Farmers are raising wages for help, but can’t find people who want to do the work.” Consolidation of farms continues because of economies of scale. The rural communities where farmers live are struggling to survive. Under these conditions, government subsidies for agriculture are necessary.
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[1] Editorial, America’s dip in population growth is a warning we shouldn’t ignore, Wash. Post (Jan. 4, 2020)
[2] Recent letters to the Post disagreed with the conclusion that lower population growth was a problem. Instead, one letter argued that a “decreasing population would naturally buy the United States more time to use the limited amount of resources we have, to find a bipartisan plan of attack against climate change and to create legislation to protect the environment.” Another letter said that “slower population growth provides an opportunity for us to lift up the next generation so we can have a healthy, skilled, productive workforce” by focusing resources and attention on “the 13 million children trapped in poverty.” (Letters to Editor, Slow population growth is a good thing, Wash. Post (Jan. 9, 2020).
[3] Belz,Land O’Lakes CEO calls for investment in rural America , StarTribune (Jan. 9, 2020).