USDA census: Smaller farms falling further behind (2024)

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.
  • Many of the farms that failed between 2017 and 2022 were those farms with farm sales between $100,000 and $500,000, or farms with farm sales less than $10,000.
  • The number of farms with farm sales greater than $1 million increased from 79,386 in 2017 to 107,742 in 2022.
  • The number of farms with farm sales greater than $5 million nearly doubled from 8.972 in 2017 to 16,226.
  • While the cost of farming increased, the total value of farm products sold increased from $388 billion to $543 billion.

Increasing farm subsidies, as some members of Congress are proposing, would only widen the divide between small and large farmers.

Some members of Congress are seeking to raise the government price floor for certain crops. Their proposals to increase the price guarantees in the USDA’s Price Loss Coverage, or PLC, program would mostly benefit fewer than 6,000 farmers growing peanuts, cotton and rice in just a few states.

Since PLC payments are linked to production, the largest producers get the lion’s share of the funding. In 2021, just 10 percent of farmers received more than 80 percent of all PLC payments.

“Increasing reference prices will only add more fuel to the fire,” said Jared Hayes, the Environmental Working Group’s senior policy analyst.

Most farmers do not grow the crops eligible for these subsidies. A rise in price guarantees will help only the largest producers and accelerate increases in the cost of buying and renting farmland.

Raising price guarantees is especially bad for young farmers, who are smaller and mostly do not grow cotton, rice and peanuts.

“Increasing subsidies for legacy farmers will supercharge land prices, making it even harder for young farmers to compete with their larger, subsidized neighbors,” Hayes said.

Net farm income is forecast to be $121 billion in 2024, according to the USDA. That’s below recent record highs. But it’s above the level farmers earned in any year from 2015 to 2020 and close to the 20-year average income.

Despite the dip in profits from farming compared to last year, median farm household income is expected to remain steady at nearly $100,000, significantly above the American median household income of $75,000.

The largest farms will continue to reap extraordinary profits, according to the USDA. Large commercial farms with sales greater than $1 million are expected to enjoy farm-level net cash income of $571,000 in 2024.

Rice and peanut farmers are likely to enjoy record highs for the prices they earn in 2024. Rice cash receipts are expected to climb to $3.8 billion, up from $3.3 billion, and peanut cash receipts will increase to $1.57 billion, up from $1.56 billion.

The price that cotton farmers earn is also expected to increase in 2024, to $6.96 billion, up from $6.85 billion in 2023.

“Some farmers are struggling, but it’s not the large rice, peanut and cotton farmers who would reap the benefits of higher reference prices,” Hayes said. “A farm bill that increases these price floors at the expense of programs that help farmers withstand extreme weather or produce renewable energy will simply expand a growing economic divide.”

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The Environmental Working Group (EWG) is a nonprofit, non-partisan organization that empowers people to live healthier lives in a healthier environment. Through research, advocacy and unique education tools, EWG drives consumer choice and civic action.

USDA census: Smaller farms falling further behind (2024)

FAQs

Why is the number of small farms is decreasing and the number of large commercial farms is increasing? ›

One of the main ways is through competition. As large-scale commercial farms are able to produce crops and livestock at a lower cost due to their economies of scale, they can often sell their products at a lower price than smaller, family-run farms.

Are small farms declining? ›

The number of farms in the U.S. has continued a steady decline as mounting production expenses allow only the biggest producers to survive. The U.S. had 1.9 million farms and ranches in 2022, a 6.9% decline from 2017, according to data from the Department of Agriculture's census report released Tuesday.

Do I have to complete the USDA census? ›

Everyone who receives an ag census form is required by law to fill it out – even if you do not believe you qualify as a farmer. Simply answer what you can and return the form. If you're not a producer, it will take you just a few moments and we will update our records.

Are most farms in the US considered to be small 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.

Why are small family farms disappearing? ›

Regulations, input costs, pandemic changes, trade disruptions, aging operators, and agricultural land development are all pushing out farms.

Why do people not want to farm anymore? ›

The most straightforward concern for ag, and some other careers, is low average pay. Workers may be able to earn more money in another field that uses the same skill set. A farmer could go into trucking or sales.

Is there a future for small farms? ›

Thriving small-scale farmers and sustainable and inclusive food systems contribute to a brighter future for rural and urban populations alike across the planet. This article also appears on IFAD as part of the Bold Actions for Food as a Force for Good..

Who owns the most farmland in the United States? ›

The Land Report 100 research team analyzes transactions and scours records to determine America's leading landowners. That's how we broke the news in 2020 that Microsoft co-founder Bill Gates was America's largest farmland owner with more than 260,000 acres.

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.

What happens if I don't fill out the Census of Agriculture? ›

While the law provides for penalties for non-response, USDA says they will not fine a producer who does not complete the ag census.

What happens if I don't do the census survey? ›

The census law (Title 13, United States Code, Section 224), coupled with the Sentencing Reform Act of 1984 (Title 18, Sections 3551, 3559, and 3571), provides for penalties of up to $5,000 for failure to report, and $10,000 for intentionally providing false information.

Can you refuse to participate in the census? ›

Participation is mandatory, as described in Title 13 of the U.S. Code. Refusal to respond can result in a fine. However, no one has been prosecuted for failing to respond to the census since the 1970 Census.

How much farmland does China own in the United States? ›

China owns 384,000 acres of American agricultural land. That's a 30% increase just since 2019. And on top of that, they own land near an air force base in North Dakota.

What state has the least farmers? ›

Surprisingly, the largest state (Alaska) has even fewer farms than the smallest state (Rhode Island): 1,050 versus 1,100. Rounding out the top five in farm net income per state are Nebraska with $4.1 billion, Iowa with $3.2 billion, and Washington with about $3 billion.

What is a small farm called? ›

A hobby farm (also called a lifestyle block, acreage living, or rural residential) is a smallholding or small farm that is maintained without expectation of being a primary source of income.

Why are large farms increasing? ›

Increased productivity: California farmers have been increasing productivity over time. Although acreage has remained relatively constant, yields and quality of many crops have been growing, and farmers have been shifting to crops that generate more economic value.

Why is the number of farms decreasing? ›

The total acreage used in farms dropped about 2.2%. The number of farms in America is shrinking as growers get older and producing crops gets a lot more expensive.

Why is commercial agriculture increasing? ›

Firstly, commercial agriculture thrives on large-scale production and economies of scale. Farmers can benefit from cost advantages by cultivating extensive tracts of land or raising substantial livestock populations, such as bulk purchasing and efficient mechanization.

Why have small family farms been replaced with large corporate operations? ›

This reflects a decades-long trend of consolidation in American agriculture. Small and mid-sized farms are struggling to compete. And if they do go under, larger agriculture operations are often at the ready to buy them up. The businesses that control our food supply have been consolidating for decades.

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