This glossary is intended to provide the user with a working
definition of the key terms used in describing this topic area.
Beginning Farm or
Ranch
A family farm is considered a beginning farm when a farmer or
rancher has not operated a farm or ranch for more than 10
years. This 10-year requirement applies to all operators,
defined as members of an entity who will materially and
substantially participate in the operation of the farm or ranch.
Different USDA programs, with differing goals, may have additional
eligibility criteria placed on the definition of a beginning farmer
or farm. The Agricultural
and Resource Management Survey allows for the identification of
farming experience for up to three operators per farm. Because some
farms have more than one operator, there are more beginning farmers
and ranchers than there are beginning farms and ranches.
Limited Resource Farm or
Ranch
Limited resource farms are defined based on low farm sales for
two years and low household income for two years. Low farm sales
are defined as less than $100,000 in 2003 dollars. The cutoff for
low household income is current year income below the poverty level
for a family of four with two children or income less than half of
the county median household income. Previous definitions also
considered a limit on farm assets. However, that requirement was
eliminated because of the difficulty in verifying asset values on
applications to participate in USDA programs. Instead, the
requirement for a second year of low income--which is easier to
verify than low assets--serves as an indication of persistently low
income.
Socially Disadvantaged Farm or
Ranch
A family farm is considered "socially disadvantaged" when the
principal farmer or rancher is a member of a group whose members
may have been subjected to gender, racial or ethnic prejudices
because of their identity as members of a group, without regard to
their individual qualities. Depending on the farm program, socially
disadvantaged groups include women, African Americans, Native
Americans, Alaskan Natives, Hispanics, Asians, and Pacific
Islanders. Socially disadvantaged farmers have not necessarily
experienced prejudices themselves, although they have one or more
of these personal characteristics.