By Justin Walker
Communications Specialist
The America’s Diverse Family Farms 2018 Edition, released by the U.S. Department of Agriculture (USDA), is now available.
The report is an overview of U.S farms from an economic and commodity perspective, USDA agricultural economist Chris Burns said.
“Ninety-eight percent of U.S. farms are family farms,” Burns said. “They account for 87 percent of farm production.”
Small farms make up 89 percent of all farms in America, according to the report. Those farms operate on half of all agricultural land in the U.S.
On the economic side, the report shows most farm households do not qualify for low income or low wealth status.
“Fifty-nine percent of farm households receive an income that is at or above the median for all U.S. households in 2017,” Burns said.
The report also analyzed farm production under contract, he said. These agreements typically exist between a farmer and an intermediary, such as a processer, and regulates the quantity, price and outlet for any particular commodity.
This is a tool farmers can use to lower their risks for price and revenue, Burns said.
“We found that about one third of all agricultural production occurred under contract in 2017,” he said.
That is roughly the same percentage as it was 20 years ago, Burns said. But there are slight changes when it comes to certain commodities.
“Tobacco has gone from almost no production under contract to 90 percent,” he said. “That had to do with changes in the tobacco industry.”
There was also a significant change in swine production.
“Hog processors wanted to have more control of the quality of the hog meat and have increased their uses of contracts, as well,” Burns said.
There is a relation between size of farm and which commodities they deal with, he said. Roughly two thirds of dairy products come from large scale farms, as well as fruits and nuts. Cotton is typically grown on mid- to large-sized farms.
Small farms account for roughly half of hay and poultry production.
Click here to view the America’s Diverse Family Farms 2018 Edition.