Here are eight takeaways illustrating the landscape of U.S. farm productivity and financial resources.
Released on Dec. 10, USDA-ERS published its 2024 edition of America’s Farms and Ranches at a Glance. This publication, which pulls from survey data collected at the end of 2023, aims to give a snapshot of the U.S. farm economy.
Takeaway 1: In total, family farms accounted for about 96% of total farms and 83% of total production in 2023.
A big part of the study breaks down different characteristics of farms by type. The first differentiation is between family farms and non-family farms. Per the USDA, a family farm is a farm in which the majority of the business is owned by an operator and/or any individual related by blood, marriage, or adoption, including relatives who do not live in the operator’s household.
Among family farms, farms are divided by farm size measured by gross cash farm income (GCFI).
- Most U.S. farms (86%) are small family farms (GCFI less than $350,000); these farms operate on 41% of U.S. agricultural land and account for 17% of the total value of production
- Midsize family farms (GCFI between $350,000 and $999,999) accounted for 18% of agricultural land and 18% of the total value of production.
- Large-scale family farms (GCFI of $1,000,000 or more) accounted for 48% of the total value of production and 31% of agricultural land in 2023.
- GCFI includes sales of crops and livestock, government payments, other farm related income, and fees received by operators from production contracts.
Takeaway 2: Large-scale family farms dominate the production of many selected commodities
- Large-scale family farms accounted for the majority of the value of cash grains and soybeans (52%), cotton (71%), dairy (77%), and specialty crops (59%) production
- Small family farms produced 45% of the value of hay and 46% of the total value of U.S. poultry and egg output
- 22% of the value of beef production occurred on small family farms, while 39% occurred on large-scale family farms. Small family farms often have cow-calf operations, while large-scale family farms are more likely to operate feedlots
- Compared with 2022, nonfamily farms comprised a larger share of the value of production, with their value of beef production increasing from 11% in 2022 to 26% in 2023.
Takeaway 3: Small family farms and non-family farms are potentially more financially vulnerable.
The data in this report was collected when net cash income was above the 10-year average. USDA measures financial performance by operating profit margin (OPM), with a noted high-risk zone of less than 10 OPM.
- In 2023, between 52 and 85% of small family farms, depending on the farm type (retirement, off-farm occupation, low sales, moderate sales), had an OPM in the high-risk zone.
- Around 53% of nonfamily farms had an OPM in the high-risk zone.
Takeaway 4: Use of credit and loans is an important resource for all farms.
- The share of farms (28%) using credit in 2023 was lower than the previous 10-year average of 31%.
- Within every type of farm, on average, 80% or more of debt came from traditional lending sources, including the Farm Credit System, USDA, FSA, and commercial banks, compared with trade credit or other sources.
Takeaway 5: Less than one-quarter of farms use government payment programs.
- The percentage of farms receiving government payments ranged from 21% for small family farms to 44% for midsize and large family farms.
- Small family farms received 76% of all payments from USDA’s Conservation Reserve Program (CRP)
- 41% of all USDA, Natural Resources Conservation Service (NRCS) working lands program payments were received by small family farms, which includes Environmental Quality Incentives Program (EQIP) and Conservation Stewardship Program (CSP).
- Midsized and large-scale family farms accounted for 66% of the total value of production and received 71% of countercyclical-type payments, which include Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) and 61% of all other payments, which include Dairy Margin Coverage, agricultural disaster, and ad-hoc payments
Takeaway 6: 16% of farms participated in federal crop insurance programs. This is a slight increase from 14% in 2022.
- 66% of farms producing row crops (cotton, corn, soybeans, wheat, peanuts, rice, or sorghum) purchased Federal crop insurance.
- 17% of farms growing specialty crops, such as fruits, vegetables, and nursery crops, and 12% of farms producing livestock purchased Federal crop insurance.
Takeaway 7: Many farms rely on off-farm income.
- Most (85%) of all U.S. farm households earned the majority of their total household income from off-farm sources
- 52% of family farm households had negative farming income
- Overall, 42% of farm households have income below the US median in 2023.
Takeaway 8: New insights on unpriced stored grain highlight the risk management tool.
For the first time, the study asked about unpriced stored corn, soybeans and wheat.
- The largest volumes were in post-harvest months.
- The average share of total stocks as of December 2023 that was unpriced was 38.6% for corn, 32.9% for soybeans, and 20.4% for wheat
- Unpriced off farm storage is less commonly used
