Q. What is a "family farm"?
A. There is no generally accepted definition
of "family farm," and a variety of definitions,
implicit and explicit, have been used by Congress, researchers,
and others. Some of these definitions are summarized below:
1. All farms except large, nonfamily corporations (U.S. Congress,
1985)
2. Farms with no hired manager; no nonfamily corporations or cooperatives
(Salant et al., 1986; Hoppe et al., 1996)
3. Farms using less than 1.5 person-years of hired labor; no hired
manager (U.S. Congress, 1985)
4. Farms with less than 3.0 person-years of labor; family supplying
at least half of labor (Irwin, 1973)
5. Farms with less than 1.5 to 2.0 family workers and the same
or fewer number of hired workers; buying and selling in the market;
self-managed; tenancy not extremely high (Breimyer, 1991)
6. Farms where agricultural production is either the primary occupation
of the operator (or is an important contributor to family income);
that provide at least half-time employment for an operator, family
member, or a hired laborer; and that are operated by no more than
three extended families (Sumner, 1985).
ERS Definition
ERS uses definition 2, which includes all farms except those
with hired managers and those organized as nonfamily corporations
or cooperatives. The farms included in definition 2 are closely
held (legally controlled) by their operator and the operator's family.
The operator and operator families of the excluded farms have limited
say over the distribution of the net income or equity of the farms
they operate.
Family farms include farms not operated by a hired manager
that are:
- Organized as a sole or family proprietorships.
- Organized as partnerships.
- Organized as family corporations.
Nonfamily farms include:
- Farms organized as nonfamily corporations.
- Farms organized as cooperatives, estates, trusts, and grazing
associations.
- Farms operated by hired managers.
Size Restrictions
Other definitions exclude even more farms from consideration. Excluding
farms based on hired labor, total labor, share of labor provided
by the family, contracting arrangements, or tenure tends to eliminate
larger farms. Excluding such farms would make sense only if the
focus is small family farms. Conversely, including only operations
where the operator's main occupation is farming, or where the farm
provides at least half-time employment, would exclude smaller farms
that are, nevertheless, classified as farms under the current U.S.
farm definition.
References
Hoppe, Robert A., Robert Green, David Banker, Judith Z. Kalbacher,
and Susan E. Bentley. Structural and Financial Characteristics
of U.S. Farms, 1993: 18th Annual Family Farm Report to Congress.
AIB-728. U.S. Dept. Agr., Econ. Res. Serv., Oct. 1996.
Breimyer, Harold F. "Is There a Family Farm Anymore?"
Agricultural Technology and Family Farm Institute, Rural Wisconsin's
Economy and Society: The Influence of Policy and Technology.
Madison, Wisconsin, April 10, 1991.
Salant, Priscilla, Melinda Smale, and William Saupe. Farm Viability:
Results of the USDA Family Farm Surveys. RDRR-60. U.S. Dept.
Agr., Econ. Res. Serv., July 1986.
Sumner, D.A. "Farm Programs and Structural Issues," in
The 1985 Farm Legislation. B. Gardner (ed.). Washington,
DC: American Enterprise Institute, 1985.
U.S. Congress. Public Law 99-198, "Food Security Act of 1985,"
December 23, 1985.
Irwin, George D. "Viability of the Family Farm," 31st
Agricultural Workers Conference, Tuskegee Institute, December 10-11,
1973.
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