The 2019 edition of the America’s Diverse Family Farms report indicate that 90% of all farms in the United States are family farms, which represents 88% of production. The report looks at 2 million farms and the data was collected by the 2018 Agricultural Resource Management Survey.
“The report includes what the farms produce, farm profitability, receipts of government payments and participation in agricultural federal programs which is important to understanding the farm sector,” said Christine Whitt, agricultural economist for the U.S. Department of Agriculture’s Economic Research Service.
“ARMS is USDA’s primary source of information on farm businesses and associated household principle operators,” Whitt said. “Principle operators are those who are most responsible for running the farm.”
USDA defines a farm as anyplace that sold at least $1,000 worth of farm products in a given year.
“A family farm is any farm where more than 50% of the business is owned and operated by an operator and individuals related to one operator,” Whitt said.
“The majority of farms are small family farms, but large-scale farms have the largest share of the value of production,” Whitt said. “Small farms represent 90% of all farms, 48% of acres operated and 21% of production whereas large-scale family farms represent 2.7% of farms, but account for the largest share of production at 45.4% on 19.5% total acres operated.”
“Over 41% of U.S. family farmers fall into the off-farm occupation typology class and over 80% of those operators work off farm as do 60% of their spouses,” Whitt said.
“Principle operators of large-scale family farms are less likely to work off the farm than operators of small and midsize family farms — 11% of principle operators of large farms and 3% of very large farms held off-farm jobs,” Whitt said.
“The majority of spouses of principle operators reported healthcare benefits are one of the reasons for working off the farm,” Whitt said.
Occupations of operators who work off the farm are different from the general U.S. workforce. “Among operators of commercial and intermediate farms who also hold an off-farm job, 15% to 18% are working in farming, fishery or forestry occupations compared to 1% of the U.S. workforce,” Whitt said. “In general, farm operators are more likely to work in goods producing occupations and less likely to work in service occupations.”
Most payments from commodity related and working land conservation programs go to three groups — moderate sales, midsized and large farms, representing 76% working and 72% commodity-related payments, Whitt said.
“Very large family farms and non-family farms received small amounts of commodity payments because the commodities they produce typically fruit or vegetable and livestock are not covered by these programs,” Whitt said.
CRP is targeted at conservation by taking environmentally-sensitive land out of production.
“The bulk of the payments are going to retirement, off-farm occupation and low sales farms,” Whitt said. “These three groups represent 76% of the total CRP payments, and many farms receive no payments.”
Federal crop insurance insures farmers from yield or revenue losses.
“Participation in the federal crop insurance program has increased substantially over the last few decades,” Whitt said. “In 1989, the program covered about 1 million acres, and in 2018, about 300 million acres were covered.”
Midsized and large family farms received 67% of the indemnities from federal crop insurance.
“That reflects the high participation rates of these farms,” Whitt said. “Two-thirds of the midsized and three-fourths of the large farms participate in federal crop insurance programs.”
