Statistic
Over the last 20 years, farm income has represented a small share of total farm household income--as little as 4.6 percent and never more than 17.5 percent. This pattern supports the counterintuitive notion that farming matters little to the financial well-being of U.S. farm households. However, the share of farm income to total farm household income can be misleading.
Feature
Farm households that also operate nonfarm businesses have accounted for roughly 18 percent of U.S. farm households since the 1990s. In 2007, farmer-owned nonfarm businesses employed over 800,000 nonfarm workers and contributed an estimated $55 billion to their local communities’ gross county product.
Finding
In 2011, 11 percent of beginning farm operators under age 35 had gross farm sales of $250,000 or more, compared with 6 percent of beginning operators age 35-49 and 1 percent of those age 50 and older. As a result, young beginning farm households tend to earn more on their farm and less off their farm than other beginning farm households.
Finding
Net farm income in 2013 is forecast to be $128.2 billion, which would be nearly 14 percent higher than forecast in 2012. Adjusting for inflation, this would be the highest net farm income since 1973.
Feature
While the impact that climate change will have on future growing conditions in specific areas of the country remains uncertain, the ability of farmers to adapt to climate change—through planting decisions, farming practices, and use of technology—can reduce its impact on production, farm commodity prices, and farmer returns.
Feature
The complexity of the current tax code, together with perceptions that it distorts economically efficient decisions and is inequitable, has led to calls for fundamental tax reform.
Feature
The leading agricultural input firms are multinational companies with R&D facilities located around the world. These global research networks allow large firms to develop and adapt new technologies to local conditions, meet national regulatory requirements for new product introductions, and achieve cost economies in some of their R&D activities.
Finding
ERS analysis finds that direct payments have little effect on agricultural production decisions. A more rigorous analysis accounting for farm and regional characteristics also found no evidence of direct payments having economically significant effects on production.
Finding
Farm households purchasing individual health insurance directly from private vendors are likely to spend more on health care than those with other sources of health insurance. Other things being equal, among all farm households, those without any insurance coverage have the lowest health care expenditures.
Feature
Total factor productivity in agriculture is showing rapid growth at the global level led by improved performance in China and Brazil, although the global rate of growth in harvested yield for major grains and oilseeds has slowed. Agricultural productivity growth may be slowing in some countries and regions and remains very low in food-insecure Sub-Saharan Africa.
Feature
Farmland values have been rising but so have farm earnings. Historically low interest rates contribute to sustained high farmland prices and have helped improve the affordability of farmland. Strong farm earnings have dampened the impact of a significant downturn in residential land markets.
Feature
Creating and maintaining a broad portfolio of wealth may be central to sustainable rural prosperity. However, the impacts that rural development strategies have on wealth and the impacts of existing wealth on those strategies are generally not well understood.
Finding
R&D expenditures by the global food manufacturing industry reached $11.5 billion in 2007, with the U.S. accounting for $3.1 billion of the total. However, research spending relative to the value of production in U.S. food manufacturing is relatively low, at about 1.5 percent, compared with 10 percent for total U.S. manufacturing.
Statistic
In recent years, private-sector research expenditures directed at crop production inputs have been 3.5 to 5.5 times higher than those directed at livestock production inputs.
Finding
After 2 straight years of rapid growth, U.S. net farm income is forecast to decline by 6.5 percent in 2012 to $91.7 billion.
Finding
The main driver of agricultural productivity growth over the last 50 years has been the application of new technologies to farming. Robust productivity growth has allowed U.S. agriculture to hold down the cost and environmental consequences of growing more food and fiber.
Feature
As agricultural production has shifted to farms with larger sales, so, too, has the distribution of commodity-related program payments. Unless the design of commodity programs changes substantially, current payment trends are likely to continue.
Feature
The ACRE program relies on State- and farm-level revenue payment triggers to provide producers with an alternative to price-based and direct payment commodity programs. Switching from a State-level trigger to one closer to the farm level would generally increase expected payments, but the impact would vary by crop, region, and market prices.
Statistic
The ERS Major Land Uses series provides over 50 years of estimates of land in various uses, including cropland, pasture and range, and forest. These State and national estimates provide insights into changes in land use over time.
Statistic
Since 1980, the variation in cropland used for crops has been relatively small, despite significant variation in real (adjusted for inflation) commodity prices.
Finding
Most studies estimate significant increases in land-use requirements for agricultural production resulting from scaled-up biofuel production. Additional research on variables, such as projected crop yields, will be instrumental in narrowing the bands of uncertainty associated with such projections.
Feature
Increased use of the tax code for policy goals has boosted incomes of rural taxpayers, who tend to have lower incomes and higher poverty than urban taxpayers.
Feature
According to USDA long-term projections, continued income growth will make developing countries the main source of the projected increases in global food demand and trade.
Finding
Contracts cover a growing share of U.S. corn, soybean, and wheat production. Rising use likely reflects increased price variability, a wider availability of risk management tools, and structural change in agriculture.
Finding
Net value added, net farm income, and net cash income—the three key U.S. farm sector financial indicators—are expected to improve in 2011.