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Farm Structure: Questions and Answers

Q. How many farmers are there?

A. Until recently, farm data sources in the United States assumed one farmer (or operator) per farm. Under this assumption, there are 2.1 million farm operators (table 1). Some farms have more than one operator, defined as anyone who makes day-to-day-decisions about the farm business. For example, the spouse, a sibling, or an adult child of the primary operator may also be operators. New data show that the primary and secondary operators total 2.9 million. These data indicate that the “one farm, one operator” rule understates the count of farm operators by about 800,000.

The USDA’s 2002 Agricultural Resource Management Survey (ARMS) asked respondents to report the number of operators on their farms and to provide more detailed information – such as age and major occupation – for up to three operators. ARMS data are used here to get a count of all operators and identify farms with multiple operators. The ARMS data are also useful in answering two questions related to farms with more than one operator:

  • What kinds of farms have multiple operators?
  • Can multiple-operator farms provide a substantial number of “replacement farmers” as the current primary operators age?

Characteristics of Multiple-Operator Farms

Understanding multiple-operator farms is important, because they produce a large share of agricultural output. It turns out that the 32 percent of U.S. farms with multiple operators account for a disproportionate 50-percent share of agricultural production.

Today’s larger commercial farms often require more management and labor than an individual can provide. The number of operators per farm increases with sales, from an average of 1.3 for farms with sales less than the $10,000 to an average of 1.8 for farms with sales of $500,000 or more. About 55 percent of farms in that sales class had two or more operators, or 23 percentage points more than the corresponding estimate for all U.S. farms.

Distribution of farms by numbers of operators

About half of all dairy farms had multiple operators, including two-thirds of dairy farms with sales greater than $250,000. This is not surprising, given the labor required in dairying.

Share of dairy farms that are multiple-operator

One type of multiple-operator farm is the multiple-generation farm, with at least 25 years difference between the ages of the oldest and youngest operators. Of the nearly 700,000 multiple-operator farms, only 12 percent are multiple-generation operations (table 1). This percentage increases with farm size, reaching 25 percent for multiple-operator farms with at least $250,000 in sales. Multiple-generation farms are more common when the primary operator is either young or elderly, making up 16 percent of multiple-operator farms when the primary operator is under 35 and 22 percent when the operator is at least 65. The share is only 9 percent when the primary operator is 35 to 64 years old.

Replacement Farmers

The average age of primary farm operators was 55 years in the 2002 Census of Agriculture, and has increase steadily since the 1978 Census, when the average was 51 years. The high – and increasing – average age of primary operators has led to concern about the future of farming. However, some potential replacement farmers are currently working as secondary operators on larger, multiple-generation farms. Multiple-generation farms number only 86,700, so they could provide replacement operators for only a fraction of the 2.2 million U.S. farms. In addition, some secondary operators in multiple-generation farms perform fairly specialized functions – such as marketing or field operations – and may not have the broad experience and skills necessary to take over a large farm.

On the other hand, relatively few replacement farm operators will be necessary for the largest, commercial-sized farms producing the bulk of farm products. The 2002 Census of Agriculture estimates that the 34,100 largest farms account for 50 percent of the sales of farm products, and the 143,500 largest farms account for 75 percent of sales. Replacing the operators of these farms from multiple-generation farms is more feasible.

For more information, contact: Robert Hoppe

Web administration: webadmin@ers.usda.gov

Updated date: February 14 , 2005