Small and Family Farms (2024)

Small and Family Farms (1)

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National Institute of Food and Agriculture

United States Department of Agriculture

Small and Family Farms (5)

More than 90 percent of farms in the U.S. are classified as small, with a gross cash farm income of $250,000, or less. These farms, most of which are family-owned and operated, confront considerable challenges due to current trends, such as increased movement into cities, an aging population, farm consolidation, and changing weather patterns.

Importance of Family and Small Farms

Family and small farms are vital to our economy and well-being as a nation. Not only do they support the competitiveness and sustainability of rural and farm economies, they serve to:

  • Protect and enhance natural resources and the environment
  • Provide a nursery for the development of new enterprises and marketing systems
  • Maintain rural populations

NIFA’s Impact

NIFA works to improve the economic conditions and quality of life within small and family farm communities. In particular, our focus is to:

  • Increase confidence, production, and profits for small farm communities
  • Develop new and improved practices to reduce production costs
  • Ensure that farmers are knowledgeable about:
    • whole farm planning
    • estate planning and farm transition
    • risk management
    • market opportunities
  • Establish research and demonstration plots for specialty crops and apply technologies and best practices to field use
  • Ensure that all farmers have equal access to USDA’s programs and services

Programs

Family and Small Farm Program

Community and Economic Development

The Hatch Act of 1887 (Multistate Research Fund)

Urban, Indoor, and Emerging Agriculture

Equipment Grants Program (EGP)

From Learning to Leading: Cultivating the Next Generation of Diverse Food and Agriculture Professionals (NextGen)

Funding Opportunities

Beginning Farmer and Rancher Development Program

Cyber-Physical Systems (CPS) (Joint NSF) Competitive Grants Program

Emergency Citrus Disease Research and Extension Program Pre-Applications

Research Facilities Act Program

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Small and Family Farms (2024)

FAQs

What is considered a small family farm? ›

A small family farm is a farm that is owned and operated by a family and grosses less than $350,000 per year. In the United States, 89% of farms are small family farms, and small family farms account for about 20% of agricultural production. A corporate farm is owned and operated by a non-family-run business.

What are small farms that grow just enough for a family called? ›

Final answer: Subsistence agriculture is when you only grow enough food to support your family.

What drove small family farms out of business? ›

cies caused family farms to die because they lacked the necessary financial re- sources and labor capabilities to survive. Id. "As part of this painful death, foreclosures and bankruptcies skyrocketed, rural suicides increased, and a farm exodus paralyzed the nation's agricultural regions." Id.

Why are small family farms disappearing? ›

The loss of farms isn't driven by only one issue. Regulations, input costs, pandemic changes, trade disruptions, aging operators, and agricultural land development are all pushing out farms. The smallest farms are experiencing the greatest challenges.

Are small family farms profitable? ›

So to summarize: the answer to the question 'are small farms profitable' is emphatically YES... if you diversify intelligently, make maximum use of season extension, employ detailed farm planning and business planning, keep site of your Vision to stay on-track, and create integrated systems to reduce work and increase ...

What are the cons of small family farms? ›

CHALLENGES TO FAMILY FARMER

Starting a farm is costly, and most new farmers have limited access to assistance, genetics and knowledge. Small family farmers can be wiped out by disease or disaster, with no safety net.

What does the USDA consider a small farm? ›

Small family farms – GCFI less than $350,000 Low-sales farms – GCFI less than $150,000. Moderate-sales farms – GCFI between $150,000 and $349,999. Mid-size family farms – GCFI between $350,000 and $999,999. Large-scale family farms – GCFI of $1,000,000 or more.

What is farming just enough for you and your family called? ›

Subsistence agriculture is the production of food primarily for consumption by the farmer and mostly found in less developed countries. In subsistence agriculture, small-scale farming is primarily grown for consumption by the farmer and their family.

Why are family farms struggling? ›

They often migrate to more urban areas, leaving the old folks to keep farming. This urban migration represents a global crisis: the average age of farmers keeps rising. And with not enough young people to take over, the very notion of a family farm becomes endangered.

How much debt does the average farmer have? ›

The farm sector is more than $426.6 billion in debt, according to U.S. Department of Agriculture data. The average farm was $1.3 million in debt in 2017, the Nebraska Farm Business Inc. found, and the sector's total debt has risen by more than 8.5 percent since then.

Do small farms still exist? ›

Farming and Ranching

More than 90 percent of farms in the U.S. are classified as small, with a gross cash farm income of $250,000, or less.

Are small farms worse for the environment? ›

Most of the world's farms are small. This study finds that smaller farms have higher yields and biodiversity than larger ones but little difference in greenhouse gas emissions and profits.

Why are the farms struggling to make money? ›

Some of the factors the USDA attributes to the decrease — an average of $72,000 for every farm in the U.S.— include lower commodity prices, lower direct government payments and higher production expenses.

What percent of farms are small family farms? ›

Food equals family – 97 percent of the 2.1 million farms in the United States are family-owned operations. Small business matters – 88 percent of all U.S. farms are small family farms.

What is the average size of a family farm? ›

The average farm size for 2021 is 445 acres, up from 444 acres the previous year.

What is a good size for a small farm? ›

A hobby farm or a smallholding is generally thought to be a plot of land that's less than 10 acres in size. It should be a piece of land that's manageable for one person or a single family to maintain.

How big of a farm do you need to feed a family? ›

For the average family of four, you can expect to grow a year's worth of food on three to five acres. We really do think that five acres is the sweet spot because it allows you to stack your animals and really utilize permaculture practices. One acre for gardens, perennials and fruit trees.

What is the legal definition of a family farm? ›

The term family farm is provided its own definition in section 2.1(e)(2) which states: (2) “Family farm” means any real property which is under cultivation or which is being used for pasture or grazing, or that is used to produce any agricultural commodity, as that term is defined in Section 51201 of the Government ...

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