(Selected research findings from FY 24)
Growing public and private investments in alternative food production systems are leading to innovations and technological advancements in agriculture
Food producers, researchers, and entrepreneurs in the United States are increasingly creating, experimenting with, and expanding two alternative production systems: controlled environment agriculture, which is well established but undergoing a shift with the incorporation of innovative technological solutions, and agrivoltaics, a new technological system that only recently expanded in the United States. This study examines recent innovations for both systems, the extent to which the systems are being adopted, whether the systems provide output for agricultural markets, and, if so, what food and agricultural products are entering the market. In addition, the report discusses the challenges these alternative food production systems face, including economic and technical challenges.
Incorporating cover crops into an integrated crop-livestock system with cattle can improve the profitability of cover cropping and livestock production
Cover crops provide seasonal living cover during a period when a crop might not otherwise be grown (e.g., late fall, winter, and early spring). While researchers have found that integrated livestock-cover crop systems tend to be profitable, according to the 2017 Census of Agriculture, only 14 percent of U.S. cattle operations with cropland have adopted cover crops, a similar adoption rate to all farms in the United States with harvested cropland. This study summarizes the literature on the profitability of using cover crops for forage, presents new data findings on the prevalence of cover crop use and grazing/harvesting on cattle operations, and examines the potential for increased adoption of cover crops on cattle operations.
World production of crop, livestock, and aquaculture commodities grew fourfold between 1961 and 2020
World agriculture has undergone significant transformation over the past six decades. Over this period, most regions of the world transitioned from a natural resource-dependent to a productivity-led growth path, made possible by the development and adoption of new technologies and farming practices. This report documents those changes, providing insights into shifting patterns of agricultural production and resource use worldwide. It also shows the evolution of agricultural growth over time and discusses the implications of these dynamics for sustainable use of natural resources and global food security. Over the past 60 years (1961–2020), world production of crop, livestock, and aquaculture commodities grew fourfold, from a gross value of $1.1 trillion to $4.3 trillion dollars (at constant 2015 commodity prices).
Total debt held by the farm sector has been rising every year since 2012, reaching $504 billion in 2021
Farm operators obtain loans to expand operations, cover day-to-day expenses, and survive a financial downturn. Farm debt can significantly impact the overall welfare of farm households and the financial health of farm operations. In 2022, the U.S. Federal Reserve rapidly increased the short-term Federal funds rate. Higher interest rates can affect longer term debt and reduce profitability for many farm operations. The existence of competitive credit sources is beneficial to farmers for multiple reasons, including possibly lower borrowing costs and the opportunity to choose from different lenders. This report examines farm debt by lenders from 2012 through 2021, as well as other attributes, such as loan types (real estate and non-real estate) among different types of farm businesses.
Consistent with long-term trends, the number of U.S. dairy farms has fallen, with larger dairy farms emerging that produce more milk per cow
Over the past two decades, the U.S. dairy industry has evolved. The number of U.S. dairy farms has decreased (while milk production has increased), with larger dairy farms emerging that produce more milk per cow. The number of farms with fewer than 1,000 cows has fallen, while the number of farms with 1,000 or more cows has risen. These shifts raise questions about how dairy farms have changed in size, diversification, location, use of advanced technology, and cost of production. Questions also arise about economies of scale in the dairy industry and the structure of larger versus smaller dairy farms. This study uses various USDA data sources to take a deeper look at the recent changes in the structure of U.S. milk production and how the structure differs by size of the operation and by U.S. region.
Certified organic milk production has grown over the last several decades, increasing its share of the total U.S. milk market
Increased consumer demand for certified organic foods and the establishment of the USDA’s National Organic Program in 1990 offered U.S. dairy farmers a new market for milk. As organic dairy markets and regulations for certified organic milk production evolved, organic milk production and the number of organic dairy operations increased. With this growth, production locations have shifted, with Texas emerging as the top U.S. producer of certified organic milk, whereas Idaho and New Mexico have also increased their shares of production. This study uses USDA data to examine changes in farm structure, production costs, technology adoption, and challenges facing organic dairy producers. The report shows that the growth of organic milk production has differed by U.S. State, with regional differences in farm structure and cost of production.
Most U.S. farms (86 percent) are small family farms; these farms operate on 41 percent of U.S. agricultural land and account for 17 percent of the total value of production
This annual report, previously known as America's Diverse Family Farms, provides the latest statistics on U.S. farms and ranches, including production, financial performance, and farm household financial characteristics by farm size. This edition also explores farmers’ use of precision agriculture. The study concluded that in 2023, family farms remained the dominant type of farm in the United States accounting for 96 percent of all U.S. farms and 83 percent of farm production. Farm households, in general, were not considered low income or low wealth compared with U.S. households. However, most farm households, 85 percent, received over half of their income from off-farm sources, and https://ers.usda.gov/newsroom/events/2024/12/10/webinar-america-s-farms-and-ranches-at-a-glance-2024-edition51 percent had negative income from farming. In addition, when analyzing the use of precision agriculture technologies, adoption of yield monitors, maps, guidance autosteering systems, and variable rate technologies outpaced the adoption of other precision agriculture technologies.
National-level data from 1996 to 2021 is used to estimate a national supply response for seven major U.S. crops, improving elasticities used in the development of long-term commodity projections
This report analyzes how farmers change the acreage of corn, soybeans, wheat, sorghum, barley, oats, and cotton in response to price changes. The report uses a system of equations to show that an increase in the price of one crop is associated with a decrease in the acreage of competing crops, demonstrating a negative cross-price elasticity. Historical data from 1996-2021 are used to calculate these effects which are used to enhance the U.S. baseline model which provides a 10-year outlook for seven major crops.
This report provides a broad overview of the Federal programs that are designed to help agricultural producers manage risks to income or profitability caused by natural and economic forces
Agriculture is inherently characterized by risk and uncertainty. Producers must contend with a host of factors that are inherently unpredictable by nature and outside of their control yet have the potential to adversely influence yields and revenues. Consequently, strategies to mitigate declines in income or profitability, or decrease variability in either income or profitability (generally referred to as risk management strategies), play an important role in agricultural producers’ ability to withstand unpredictable shocks and maintain long-term financial stability. Many agricultural producers supplement private approaches to risk mitigation by drawing from a suite of programs that are administered by the Federal Government to attenuate income losses stemming from either low yields or prices. In this report, the mechanics of each risk management program are discussed with details on eligibility conditions and methods for calculating payments. Trends in enrollment and outlays are presented in the context of recent market conditions.