Over 140,000 Farms Lost in 5 Years

by Daniel Munch (American Farm Bureau Federation) Between 2017 and 2022, the number of farms in the U.S. declined by 141,733 or 7%, according to USDA’s 2022 Census of Agriculture, released on Feb. 13. Acres operated by farm operations during the same timeframe declined by 20.1 million (2.2%), a loss equivalent to an area about the size of Maine. Only 1.88% of acres operated and 1% of farm operations were classified under a non-family corporate farm structure.

Conducted every five years, the Census of Agriculture collects data on land use and ownership, producer characteristics, production practices, income and expenditures. USDA defines a farm as an operation that produced and sold, or normally would have sold, $1,000 or more of agricultural products during the census year.

While the number of farm operations and acres operated declined, the value of agricultural production increased, rising from $389 billion in 2017 to $533 billion in 2022 (40% nominally and 17% adjusted for inflation). These updated numbers highlight the continuing trend of fewer operations farming fewer acres of land but producing more each year.

In addition to Ag Census data, USDA releases survey-based estimates on farm numbers once every year. Using this annual survey data dating back to 1950, the trend of fewer operations farming fewer acres becomes even more obvious.

Between 2017 and 2022 the number of farms in the $0 - $4,999 economic class dropped the most, by 120,970 (13%), followed by the $5,000 - $49,000 category, which lost 32,215 operations (5%). The category of farms in an economic class over a million grew by 28,566 operations (36%). The number of farms in lower economic classes shrunk at a faster rate than those in higher economic classes. That said, most ag production is generated by farms in higher economic classes. In 2017, 69% of the value of agricultural products sold was products by farms in the million-dollar-plus economic class. In 2022 this increased to 79% (Figure 8).

Farmers and ranchers currently face the highest production expenses on record, in addition to increasingly complex local, state and federal regulations and growing competition from lower-cost foreign markets. These dynamics shrink margins for producers and often more significantly impact farms in lower economic classes. Farms that are able often expand in size to capitalize on economies of scale, a concept rooted in the efficiency often gained as production increases. Larger farms can benefit from reduced per-unit costs due to bulk input purchasing, streamlined operations and enhanced bargaining power with suppliers. Mechanization and modern technology, which often come with substantial upfront costs, are more economically justifiable for larger operations, further boosting productivity. Unsurprisingly, the latest census data underscores that farms making such investments tend to fare better. Notably, farms in the $0 -$4,999 and $5,000 -$49,999 economic classes, constituting over 70% of total farms, often rely on alternative income sources. Those in the $0 - $4,999 economic class, especially, are more likely to be operations participating in agriculture for leisure or personal interest as opposed to income reliance. Declines in operations in these categories may be linked to the cost associated with supporting a side business that may no longer be sustainable but has limited impacts on total domestic food production. READ MORE

Disagreements about regulation in land use planning and a lack of funding for conservation programs threaten the ability to protect vital agricultural landscapes. The “Agriculture 2040/2070” report can be a tool for Florida policymakers, developers and citizens alike as they navigate planning, development and conservation discussions.

Research is showcased in the “Agriculture 2040/2070” report through downloadable maps, a webinar, a 38-paged PDF and a PowerPoint presentation.

“Florida needs programs that are voluntary incentives based like easement and land conservation programs, where landowners are agreeing to work with the state or the federal government or local government to protect their properties,” says Dr. Tom Hoctor, Director of the Center for Landscape Conservation Planning at the University of Florida and Principal Investigator of the report. “But we also need to be smart about how Florida is growing. Part of that is potentially thinking about common sense policies that allow local communities to make smart planning decisions. … Those two approaches are complementary; we really need both.”

Smart planning would include redeveloping vacant buildings before developing untouched lands. A solution that would help strengthen communities as vacant and abandoned buildings can cause a decrease in surrounding property value, negative effects on physical and emotional health, and an increase in crime rates.

When it comes to landowners wanting to be a part of conservation programs, Dr. Hoctor explains there’s not a shortage of willing participants. Rather there was a 90% cut in state funding since 2008 to support such efforts. Though funding has increased to historic levels over the last three years (since 2021), there are hundreds of landowners waiting to place conservation or agricultural easements on their property. Currently, these growers represent millions of unprotected acres in Florida.

Under conservation easement and land conservation programs, the farmer remains responsible for the management of the land – such as controlling invasive species and plants – and will willingly put aside and conserve that portion of acreage from their normal operational uses.

“Now, if we could put enough money into our Florida Forever and Rural and Family Lands Protection programs to help landowners protect their property, that would be better instead of running into situations where we have to say, ‘it was sold to the developer instead because we didn’t have enough money in our conservation land protection programs to get it protected,’” Dr. Hoctor says. “Because that’s what is happening. It’s already happened several times in the last 10 years where we lost really important properties.” READ MORE