Small, medium, large – Does farm size really matter? (2024)

This is the question that the recent U.S. Farmers and Ranchers Alliance (USFRA) Food Dialogues: Boston explored.

It is also a common question asked of producers and Michigan State University Extension educators when interacting with the public. To start, what is a farm? The United States Department of Agriculture (USDA) defines a farm as any establishment which produced and sold, or would have sold, $1,000 or more of agricultural products during the year. Given that definition, the 2007 census indicates that Michigan had 56,014 farms with an average farm size of 179 acres (note: one acre equates to a little less than a 100-yard long American football field).

In the United States, the vast majority (nearly 96 percent) of the 2.2 million farms are family owned and operated. The USDA defines a family farm as “any farm organized as a sole proprietorship, partnership, or family corporation. Family farms exclude farms organized as nonfamily corporations or cooperatives, as well as farms with hired managers” (USDA, Economic Research Service 2007 Family Farm Report). Using gross annual sales, the USDA further classifies family farms as:

  • Small- less than $250,000
  • Large - between $250,000 and $500,000
  • Very large – more than $500,000

Acreage is another way to assess farm size. According to the USDA, small family farms average 231 acres; large family farms average 1,421 acres and the very large farm average acreage is 2,086. It may be surprising to note that small family farms make up 88 percent of the farms in America.

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As for the recent Food Dialogues, it began with a virtual video tour of three family farms including a 250 acre corn and soybean farm, a 700 acre crop and livestock farm and a 1,800 acre corn and soybean farm. The panel consisted of seven members; four farmers representing one large, one medium and two small family farms (one rural, one urban), an agriculture economist, the executive director of a non-profit health advocacy organization and the vice president for brand strategy and development for a culinary consulting practice. Alan Bjerga, author and agriculture policy reporter for Bloomberg News moderated the discussion.

After exploring topics such as genetically engineered crops, crop diversity, labor, factors that influence consumer food purchases and preferences, relationships with agribusinesses, food justice, technology and the future of agriculture some of the take away messages from the discussion include:

  • The consumer pull is strong and consumers are increasingly interested in how food is grown and raised
  • Farmers are trying to do the best they possibly can
  • All farms need to keep moving towards sustainability
  • It takes farms of all sizes to produce food, maintain open space and protect our quality of life
  • It will take all sizes and production methods to feed the world

Given the above, yes, one could say that farm size really matters and yes, small, medium and large farms all have an important role to play. To take part in the next Food Dialogues: Iowa, a Frank Discussion about Food or to listen to a recording of the Boston event visit: http://www.fooddialogues.com.

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Small, medium, large – Does farm size really matter? (2024)

FAQs

Small, medium, large – Does farm size really matter? ›

Environmental and agricultural impacts loom, too. Small farms tend to be more diversified than large-scale operations. That diversity supports healthier wildlife habitat, improved soil health and greater climate resiliency.

Are small farms better than large farms? ›

Smaller farms are more productive per hectare than significantly larger farms. They also tend to have more dependable yields. This is in part because they employ diversified farming systems.

What is a good size for a farm? ›

The average farm size for 2021 is 445 acres, up from 444 acres the previous year. Agricultural research and data collection are still mostly based on acres. Based on that, the stats that keep coming out perpetuates the perception that farming is a losing financial proposition.

Why are small farms so important? ›

Importance of Family and Small Farms

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.

What is the most profitable farm size? ›

In periods of poor to moderate profitability, driven by low to moderate commodity prices, operations with more than 500 acres tend to be more profitable than those with fewer than 500 acres, Schnitkey says.

How many acres is ideal for a small farm? ›

A small farm can range from a half-acre with a few laying hens and a small veggie garden, to 40 acres with cattle, dairy cows, sheep, goats, chickens, pigs, and acres of field crops and veggies.

What is considered a medium-sized farm? ›

Midsize: 1582 acres. Large: 2926 acres. Very large: 4673 acres.

How big of a farm do you need to survive? ›

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 national average farm size? ›

The average farm size rose from 441 acres (178 hectares) in 2017 to 463 acres (187 hectares) in 2022.

How large does a farm have to be? ›

USDA defines a farm as any place that produced and sold—or normally would have produced and sold—at least $1,000 of agricultural products during a given year. USDA uses acres of crops and head of livestock to determine if a place with sales less than $1,000 could normally produce and sell at least that amount.

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 considered a small-scale farm? ›

USDA defines a small farm as an operation with gross cash farm income under $250,000. Within that group are commercial and noncommercial farms.

Are small farms declining? ›

WASHINGTON – New data released today by the Department of Agriculture show that smaller farms are falling further behind their larger neighbors. The Census of Agriculture, which is released by the USDA every five years, found: The total number of farms fell , from 2 million in 2017 to 1.9 million in 2022.

How much money can a 1 acre farm make? ›

Gross income per acre: Direct to consumer sales – (organically certified) - $20,000 - $22,000. Direct to consumer sales – (non-organically certified) - $16,000 - $18,000. Institutional sales – (food cooperatives, restaurants) - $12,000 - $14,000.

How big of a farm do you need to make money? ›

In some cases, a decent income can be realized from as little as half an acre of land if you are doing something like greenhouse plant production. Other enterprises, such as pine straw production, beef cattle, or Christmas trees will take considerably more acreage.

What type of farmer makes the most money? ›

Dairy Farming: Dairy farming is one of the most profitable agricultural business ideas. Aside from milk, it also produces manure. There is a high demand for organic dairy products all year round such as milk, cheese, curd, cream and so much more.

Are small farms better for animals? ›

We also review the limited empirical literature linking farm size and welfare and conclude that available research provides little support for any simple relationship. In conclusion, increases in farm size provide opportunities to improve the welfare of farm animals but also create welfare risks.

What are the benefits of owning a small farm? ›

Owning a farm provides several environmental benefits for its owners and the local community. Farms can provide an important refuge for wildlife, promote biodiversity, help retain soil fertility and provide clean air and water resources.

Are local farms better than factory farms? ›

Beyond that, local farmers tend to have much more environmentally friendly practices than mega factory farms. Rather than stripping the land of its nutrients, small farms actually conserve fertile soil and even put nutrients back into the earth.

Are small local farms better for the environment? ›

The Benefit of Local Small Farms

From year to year farmers rotate their crops to maintain soil nutrient levels and reduce the amount of insect pests thus decreasing or even eliminating the need for chemicals. Small farms also grow a diverse set of crops on their farms increasing local biodiversity.

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