Monday, December 16, 2019

USDA releases 2019 report on family farms

On Friday the U.S. Department of Agriculture's Economic Research Service released a new report with updated data on family farms in the United States. "America's Diverse Family Farms: 2019 Edition" aims to give stakeholders a more granular view of farm life in 2018, since huge farming operations can skew averages. The report is based on a sample of about 15,800 farms.

"In 2018, the average value of production on the 2 million U.S. farms amounted to $174,038," the report says. "Few farms, however, are near the average; half of farms had production valued at $6,000 or less, while more than half of all production occurred on farms with at least $1 million of agricultural production."

USDA defines a family farm as one where the principal operator, and possibly some relatives, own the majority of the business and make most day-to-day decisions. Farm size is measured by gross cash farm income, which includes sales of crops and livestock, government payments, fees from production contracts, and other farm-related income. Here are a few highlights from the report:
  • Family farms accounted for 98 percent of farms and 88% of production in 2018.
  • Large-scale family farms accounted for the largest share of production, at 46%.
  • About 90% of U.S. farms were classified as small, meaning they have a gross cash farm income of less than $350,000.
  • Small farms accounted for 48% of the land operated by farms. 
  • Between 58% and 81% of small family farms, depending on type, were deemed at high risk of financial problems. However, the report notes that the operators of many small farms don't consider that their primary occupation and receive substantial income from off-farm sources.
  • Midsize and large-scale family farms accounted for 82% of cotton production, 74% of cash grains/soybeans production, and 66% of hog production.

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