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Structure and Finances of U.S. Farms: Family Farm Report, 2010 EditionMost U.S. farms—98 percent in 2007—are family operations, and even the largest farms are predominantly family run. Large-scale family farms and nonfamily farms account for 12 percent of U.S farms but 84 percent of the value of production. In contrast, small family farms make up most of the U.S. farm count but produce a modest share of farm output. Small farms are less profitable than large-scale farms, on average, and their operator households tend to rely on off-farm income for their livelihood. A companion
brochure summarizes the report's findings.
Small Farms in the United States: Persistence Under PressureNinety-one percent of U.S. farms are classified as small—gross cash farm income (GCFI) of less than $250,000. About 60 percent of these small farms are very small, generating GCFI of less than $10,000.
Beginning Farmers and RanchersUSDA defines beginning farmers and ranchers as those who have operated a farm or ranch for 10 years or less either as a sole operator or with others who have operated a farm or ranch for 10 years or less. Beginning farmers tend to be younger than established farmers and to operate smaller farms or ranches, some of which may provide no annual production.
Exploring Alternative Farm Definitions: Implications for Agricultural Statistics and Program EligibilityMeeting agricultural policy and statistical goals requires a definition of U.S. agriculture’s basic unit, the farm. However, these goals can be at odds with one another. USDA defines “farm” very broadly to comprehensively measure agricultural activity. Consequently, most establishments classified as farms in the United States produce very little, while most production occurs on a small number of much larger operations. While desirable for obtaining comprehensive national coverage, measurement and analysis based on the current definition can provide misleading characterizations of farms and farm structure in the United States. Additionally, more stringent requirements have been proposed for farms to qualify for Federal agricultural program benefits. This analysis outlines the structure of U.S. farms, discusses the current farm definition, evaluates several potential criteria that have been proposed to define target farms more precisely, and examines how these criteria affect both statistical coverage and program eligibility.
The Transformation of U.S. Livestock Agriculture: Scale, Efficiency, and RisksU.S. livestock production has shifted to much larger and more specialized farms, and the various stages of input provision, farm production, and processing are now much more tightly coordinated through formal contracts and shared ownership of assets. Important financial advantages have driven these structural changes, which in turn have boosted productivity growth in the livestock sector. But structural changes can also generate environmental and health risks for society, as industrialization concentrates animals and animal wastes in localized areas. This report relies on farm-level data to detail the nature, causes, and effects of structural changes in livestock production.
Million-Dollar Farms in the New CenturyMillion-dollar farms—those with annual sales of at least $1 million—accounted for about half of U.S. farm sales in 2002, up from a fourth in 1982 (with sales measured in constant 2002 dollars). By 2006, million-dollar farms, accounting for 2 percent of all U.S. farms, dominated U.S. production of high-value crops, milk, hogs, poultry, and beef. The shift to million-dollar farms is likely to continue because they tend to be more profitable than smaller farms, giving them a competitive advantage.
The Economic Organization of U.S. Broiler ProductionBroiler production in the United States is coordinated almost entirely through systems of production contracts, in which a grower’s compensation is based, in part, on how the grower’s performance compares with that of other growers. The industry is undergoing a gradual structural change as production shifts to larger broiler enterprises that provide larger shares of an operator’s household income. Larger enterprises require substantially larger investments in broiler housing, and new or retrofitted houses are also an important source of productivity growth in the industry. This report, based on a large and representative survey of broiler operations, describes the industry’s organization, housing features, contract design, fees and enterprise cost structures, and farm and household finances.
Characteristics and Production
CostsThis series of reports examines how
production costs vary among producers of different
commodities, including production practices, input
use levels (i.e., the technology set), and farm operator/structural
characteristics. The reports also illustrate the
degree to which costs vary for producers of different
commodities and indicate possible reasons for the
variation. Characteristics and production costs are
examined for low- and high-cost producers of each
commodity, and producers of varying size, region,
and typology classification.
See the full catalog of recommended readings...
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