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Family farms continue to lead agriculture – AgriNews

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WASHINGTON — Family farms stay the first supply of meals manufacturing within the United States, in accordance to a report by U.S. Department of Agriculture’s Economic Research Service.

“We find that 98% of U.S. farms are family farms and they account for 87% of farm production. This has remained largely unchanged when compared with 2011 data,” mentioned Christine Whitt, who co-authored America’s Diverse Family Farms report with Jessica Todd and Andrew Keller.

Data for this report is from the 2020 Agricultural Resource Management Survey carried out by ERS and the National Agricultural Statistics Service.

“The 2021 edition of this report describes characteristics of the 2 million U.S. farms in 2020. Specifically, the report examines what farms produce, how much they profit and their participation in federal agricultural programs. The report also looks more closely at farm household well-being,” Whitt mentioned.

USDA defines a farm as anywhere that, throughout a given 12 months, produced and bought — or usually would have produced and bought — no less than $1,000 of agricultural merchandise.

Farm measurement is measured by gross money farm earnings, a measure of the farm’s income that features gross sales of crops and livestock, authorities funds, and different farm-related earnings, together with charges from manufacturing contracts.

Here are the report’s findings.

Small Family Farms — GCFI lower than $350,000

• Retirement farms: Small farms whose principal operators report having retired from farming, although persevering with to farm on a small scale — 219,288 farms, 10.9% of U.S. farms in 2020.

• Off-farm-occupation farms: Small farms whose principal operators report a main occupation aside from farming — 779,767 farms, 38.8% of U.S. farms.

• Farming-occupation farms: Small farms whose principal operators report farming as their main occupation. Farming occupation farms are additional sorted into two lessons: low gross sales, farms with GCFI lower than $150,000 — 683,514, 34% of U.S. farms; and average gross sales, farms with GCFI between $150,000 and $349,999 — 110,865 farms, 5.5% of U.S. farms.

Midsize Family Farms

• Family farms with GCFI between $350,000 and $999,999 — 112,122 farms, 5.6% of U.S. farms.

Large-Scale Family Farms

• Large household farms, farms with GCFI between $1,000,000 and $4,999,999 — 51,708 farms, 2.6% of U.S. farms.

• Very giant household farms, farms with GCFI of $5,000,000 or extra — 6,124 farms, 0.3% of U.S. farms.

Non-Family Farms

• Any farm the place an operator and individuals associated to the operator don’t personal a majority of the enterprise — 47,275 farms, 2.4% of U.S. farms.

Farms, Production, Farmland

• Approximately 89% of all farms had been small household farms. Compared with 2011 — the earliest 12 months utilizing the present farm typology — the share of land operated by small household farms fell from 52% to 48% and the share of the worth of manufacturing on small household farms declined from 26% to 20%.

• Large-scale household farms accounted for 46% of the overall worth of manufacturing in 2020, a rise from 35% in 2011. These farms additionally accounted for an elevated share of whole land operated, up from 16% in 2011 to 24% in 2020.

• In whole, household farms accounted for about 98% of whole farms and 87% of whole manufacturing in 2020.

• Non-family farms accounted for the remaining 2% of farms and 13% of manufacturing. Among non-family farms, 18% had a GCFI of $1 million or extra. Such farms accounted for 90% of non-family farms’ manufacturing. Examples of non-family farms embrace partnerships of unrelated companions, carefully held non-family companies, farms with a employed operator unrelated to the homeowners, and publicly held companies.

Farm Operating Expense

• A big share of whole bills on subject crop farms went towards fertilizers and different chemical substances, 26%, in 2020, which was barely lower than the share spent in 2011, 27%. Spending on seed and vegetation accounted for one more 14% of bills on subject crop operations in 2020, which was barely greater than in 2011, 13%.

• Feed bills made up 48% of all bills on dairy operations, 19% on cattle operations and 29% on different livestock operations in 2020. The share of bills allotted to feed on dairy and different livestock operations was comparable in 2011. Livestock purchases accounted for a better share of all bills on beef cattle operations than did feed at 28% in 2020.

Pandemic And Direct Sales

• Direct gross sales amounted to nearly $10.7 billion — a virtually $2.8 billion, 35%, improve from the worth reported within the 2019 survey. Only 27% of whole direct gross sales had been direct-to-consumer, whereas the remaining 73% occurred via middleman provide chains. Among farms with lower than $75,000 in GCFI, 85% of all direct gross sales had been DTC in 2020.

• Changes in direct gross sales different throughout farm-size classes. Farms with lower than $75,000 in GCFI had $2.5 million much less in total direct gross sales in 2020 than in 2019. These smaller farms accounted for 8% of all of the direct gross sales in 2020, down from 10% in 2019. Farms with direct gross sales and a GCFI between $75,000 and $350,000 elevated their direct gross sales by $0.4 billion — which accounted for 11% of all direct gross sales — whereas farms with direct gross sales and a GCFI better than $350,000 elevated their direct gross sales by $2.4 billion, which accounted for 81% of all direct gross sales.

• The total improve in direct gross sales in 2020 occurred throughout most direct gross sales advertising channels. Sales at farmers markets and eating places elevated by 11% and 13%, respectively, whereas gross sales at farm shops, CSAs and different DTC channels, in addition to gross sales to regional distributors, elevated by 79% and 73%, respectively. However, gross sales to establishments declined by 86% in 2020 relative to 2019, which was probably due to pandemic closures or restricted operations.

Government Payments, Federal Crop Insurance

• Small household farms obtained 81% of all funds for USDA’s Conservation Reserve Program. Environmental Quality Incentives Program and Conservation Stewardship Program funds had been extra probably obtained by midsize, large-scale and non-family farms with 68% receiving funds in these classes total.

• Midsized and large-scale household farms together with non-family farms accounted for 80% of the overall worth of manufacturing and obtained 78% of commodity-linked, agricultural catastrophe applications and different federal, state and native farm program funds.

• Small household farms obtained 16% of all farm-level pandemic help from USDA and 22% of all different authorities funds — excluding pandemic help and conservation program funds — which was per the smaller manufacturing scale. Large-scale household farms obtained 52% of all farm-level pandemic help and 44% of all different funds.

• Additionally, 64% of all farm-level pandemic help reported as having been obtained from the Coronavirus Food Assistance Programs — applications 1 and a pair of — in 2020. Another 21% got here from loans from the Small Business Administration beneath the Paycheck Protection Program and advances from the Economic Injury Disaster Loan program.

• Overall, 40% of all farms reported as having obtained some sort of presidency funds in 2020.