Welfare Farms

From The Encyclopedia of Mormonism

See this page in the original 1992 publication.

Author: Haws, T. Glenn

The purchase of farmlands by the Church began in the late 1930s. The intent was to give unemployed people an opportunity to work and to produce commodities to help the poor and needy. In the 1940s, stakes and groups of stakes began purchasing farms as approved Welfare projects. Sometimes the Church would purchase a farm, and the local unit would repay the Church loan from farm revenues. In the 1970s, farms were purchased on a shared basis, with half of the funds coming from the local unit and half from Church headquarters. All new farmlands are now purchased solely by the Church. In 1990 the Church owned and operated about 160 localized Welfare farms, which raised many kinds of produce for its Welfare program. In addition, it had extensive farm holdings in its Welfare reserve system and investment portfolio.

Produce from the Welfare farms is canned in local Church canneries and transferred to the bishop's storehouses. Surpluses are sold on the open market, and the revenues from these sales are used to help pay for the production overhead of the farm. Under the supervision of a stake president, a stake farm committee from the local priesthood units involved directs the local Welfare farm operations, including its finances. Day-to-day business matters are handled by a farm manager, who is usually a full-time employee. Where feasible, donated farm labor from Church members is utilized, which is counted as a contribution to the stake's Welfare program. Local ward units organize crews of volunteers who work different shifts at the farms. As modern agricultural work becomes more sophisticated, the Welfare farms are relying increasingly on hired farm labor.

Currently, Church farm properties fall into three categories. First, there are about 160 Church Welfare farms, which are operated by a farm committee as described above, transferring their products to Church canneries and bishop's storehouses. Second, the Church owns about 250 reserve farms, which are held by the Church primarily for possible future Welfare needs. These properties are assigned to the Church-owned Farm Management Corporation. They have been acquired over the years for a variety of reasons and are not always the best-quality agricultural lands. They tend to be concentrated in areas where Church populations are located. Their products are sold on the open market. Third, the Church owns other properties for various purposes, such as investment diversification (see Finances of the Church). These farms are leased to private individuals or companies which operate them as private enterprises.

Church farms are tax-exempt only to the extent that they fill Church Welfare needs. Above their Welfare function, these farms pay taxes as regular businesses. In 1983 the Church sold more than 200 farms that exceeded its Welfare needs.

Farm projects vary according to locale, need, climate, and soil conditions. Welfare farms produce grain, fruit, and vegetables. There are also beef, pork, and poultry projects, as well as such specialized projects as honey production. The first priority of all farm production is to supply the needs of Welfare canneries and bishop's storehouses, and to use as much donated labor as possible, giving opportunities for charitable service.

Farms may vary in size from just a few acres to several thousand. Most are located in the United States, primarily in Utah, Arizona, California, and Idaho. The largest reserve farm is in California. A notable investment farm is a 300,000-acre ranch in Florida that raises livestock and citrus fruit and is used as a hunting and forestry reserve. T. GLENN HAWS

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