Pumpkin Patch (photo by Kevin Connors, courtesy of morgueFile.com)

Small family farms made up 88% of U.S. farms in 2007, but “Medium-sales, large, and very large farms were more likely to receive Government payments, especially commodity-related payments, than smaller farms,” according to a new report from the USDA’s Economic Research Service.

A small family farm is defined as one with annual sales of less than $250,000. They held 63% of the land owned by farms in 2007, and small-farm households typically do not rely on their farms for their livelihoods. Most of their off-farm income is from jobs or self-employment.

The report says, “As custodians of the bulk of farmland, small farms have a large role in natural resource and environmental policy.” But, commodity-related payments are much larger than conservation payments, accounting for 75% of all Government payments made to farmers. Commodity programs target specific commodities, largely feed and food grains, cotton, and oilseeds. According to the report, “Medium-sales, large, and very large farms were more likely to receive Government payments, especially commodity-related payments, than smaller farms.”

Commodity payments are determined by output and though large-scale farms account for on1y 2% of U.S farms, they account for 84% of the value of production. The report notes three significant features of U.S. farms:

First, small family farms make up 88 percent of all U.S. farms. Second, large-scale family farms—only 9 percent of all farms—account for a disproportionately large, 66-percent share of the value of production. Third, farming is still an industry of family businesses. Ninety-eight percent of farms are family farms, and they account for 82 percent of production. Only 2 percent of U.S farms are nonfamily farms, accounting for the remaining 18 percent of production.

To view the full report from the USDA cited above, go to: Structure and Finances of U.S. Farms, Family Farm Report, 2010 Edition

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