RESPONSE: IMPACT ON KNOWLEDGE OF FARM OPERATORS

Farm Management,

Understanding U.S. Farm Exits

The rate at which U.S. farms go out of business, or exit farming, is about 9 or 10 percent per year, comparable to exit rates for nonfarm small businesses in the United States. U.S. farms have not disappeared because the rate of entry into farming is nearly as high as the exit rate. The relatively stable farm count since the 1970s reflects exits and entries essentially in balance. The probability of exit is higher for recent entrants than for older, more established farms. Farms operated by Blacks are more likely to exit than those operated by Whites, but the gap between Black and White exit probabilities has declined substantially since the 1980s. Exit probabilities differ by specialization, with beef farms less likely to exit than cash grain or hog farms.1997 Census of Agriculture Longitudinal File, farm exit, farm entry, farm structure, farm operator characteristics, farm operator life cycle, Agricultural Finance,

Changing Farm Structure and the Distribution of Farm Payments and Federal Crop Insurance

The distribution of commodity-related payments and Federal crop insurance indemnities to U.S. farmers has shifted to larger farms as more and more U.S. agricultural production is done on those farms. Since the operators of larger farms tend to have higher household incomes than other farm operators, commodity-related program payments and Federal crop insurance indemnities also have shifted to higher income households. By 2009, half of commodity-related program payments went to farms operated by households earning over $89,540, a quarter went to farms operated by households with incomes greater than$209,000 and 10 percent went to farms operated by households with incomes of at least $425,000. Current income eligibility caps and payment limits affect few farm households because most of them have incomes below the income caps or receive payments less than the payment limits. Based on 2009 Agricultural Resource Management Survey (ARMS) data, recent proposals to lower those income caps and payment limits would still affect only a small percentage of U.S. farm households, because their incomes would still fall below the proposed income caps and payment limits. Total Government program payments to U.S. farms were$12.3 billion in 2009. Total Federal crop insurance indemnity payments were $5.2 billion in 2009.farm program payments, Federal crop insurance, Agricultural Resource Management Survey, structural change, income caps, payment limits., Agricultural and Food Policy, Agricultural Finance, Industrial Organization, Public Economics,

Structure and Finances of U.S. Farms: 2005 Family Farm Report

Most farms in the United States- 98 percent in 2003- are family farms. They are organized as proprietorships, partnerships, or family corporations. Even the largest farms tend to be family farms, although they are more likely to have more than one operator. Very large family farms and nonfamily farms account for a small share of farms but a large-and growing-share of farm sales. Small family farms account for most of the farms in the United States but produce a modest share of farm output. Median income for farm households is 10 percent greater than the median for all U.S. households, and small-farm households receive substantial off-farm income. Many farm households have a large net worth, reflecting the land-intensive nature of farming.Agricultural Finance, Consumer/Household Economics, Industrial Organization,

FARM OPERATIONS FACING DEVELOPMENT: RESULTS FROM THE CENSUS LONGITUDINAL FILE

This paper examines farms in areas undergoing development, using a longitudinal file constructed by linking several agricultural censuses. Individual farms are followed over the 1982-97 period. Survival, exit, and entrance rates are presented for three types of farms: recreational, adaptive, and traditional. The three types of farms are located where one would expect. Traditional farms are concentrated in nonmetropolitan (nonmetro) counties, while adaptive farms are concentrated in metro core counties. Recreational farms are least common in nonmetro nonadjacent areas, where off-farm opportunities are fewest. The concentration of adaptive farms in metro core counties does not appear to be the result of these farms simply surviving an urban environment better than traditional and recreational farms. In fact, adaptive farms have lower survival rates than traditional farms. Adaptive farms instead had a relatively high entrance rate.urban development, urbanization, specialty agriculture, high-value agriculture, farming, farm structure, Farm Management,

AN ANALYSIS OF NONMETROPOLITAN GROWTH IN MINNESOTA

Community/Rural/Urban Development,

Structure and Finances of U.S. Farms: 2005 Family Farm Report

Most farms in the United States—98 percent in 2003—are family farms. They are organized as proprietorships, partnerships, or family corporations. Even the largest farms tend to be family farms, although they are more likely to have more than one operator. Very large family farms and nonfamily farms account for a small share of farms but a large—and growing—share of farm sales. Small family farms account for most of the farms in the United States but produce a modest share of farm output. Median income for farm households is 10 percent greater than the median for all U.S. households, and small-farm households receive substantial off-farm income. Many farm households have a large net worth, reflecting the land-intensive nature of farming.Agricultural Resource Management Survey (ARMS), family farms, farm businesses, farm financial performance, farm-operator household income, farm operators, farm structure, farm type, multiple-operator farms, multiple-generation farms, small farms, contracting, Farm Management,

THE STRUCTURE, PERFORMANCE, AND SUSTAINABILITY OF AGRICULTURE IN THE MOUNTAIN REGION

Farmers in the Mountain Region-in both metro and nonmetro areas-face growth in population and nonfarm employment that affects land use and how farmers operate their businesses. Even in remote locations, people moving to amenity areas may result in farmers changing their operations. Sustainable agriculture, already practiced by Mountain Region farmers to some extent, may help farming to continue. Nonfarm people also have an interest in the continuation of agriculture and the adaptation of sustainable practices, in order to help preserve the amenities that make the region attractive to migrants. Growth in the region does provide some benefits to farmers, however. Growth can help keep the value of farmland up through nonfarm demand for land. In addition, the greater availability of jobs means that off-farm work is available to households operating farms. Off-farm work is particularly important, given the concentrated distribution of farm income.Production Economics,

Million-Dollar Farms in the New Century

Million-dollar farms—those with annual sales of at least $1 million—accounted for about half of U.S. farm sales in 2002, up from a fourth in 1982 (with sales measured in constant 2002 dollars). By 2006, million-dollar farms, accounting for 2 percent of all U.S. farms, dominated U.S. production of high-value crops, milk, hogs, poultry, and beef. The shift to million-dollar farms is likely to continue because they tend to be more profitable than smaller farms, giving them a competitive advantage. Most million-dollar farms (84 percent) are family farms, that is, the farm operator and relatives of the operator own the business. The million-dollar farms organized as nonfamily corporations tend to have no more than 10 stockholders.Contracting, family farms, farm businesses, farm financial performance, farm-operator household income, farm operators, farm structure, farm type, million-dollar farms, Farm Management,

Growing Farm Size and the Distribution of Farm Payments

Crop production is shifting to much larger farms. Since government commodity payments reflect production volumes for program commodities, payments are also shifting to larger farms. In turn, the operators of very large farms have substantially higher household incomes than other farm households, and as a result government commodity payments are also shifting to much higher-income households. Since the changes in farm structure appear to be ongoing, commodity payments will likely, under current policies, continue to shift to higher income households. This brief uses 2003 Agricultural Resource Management Survey (ARMS) data to detail the shifts.Farm structure, commodity programs, farm payments, farm household income, farm income, farm program payments, ERS, USDA, Agricultural and Food Policy, Industrial Organization,