From the Economic Research Service. Structure and Finance of U. S. Farms: 2005 Family Farm Report at www.ers.usda.gov.
About 717,000 farms in the US wentout of business between 1992 and 1997.
HOWEVER, the total number of FARMS declined by just 13,400 BECAUSE the number of entries into farming (707,700 farms) nearly equalled the exits. Further, the farm count has remained fairly stable since the 1974 census and we still have a bout 2,000,000 of them.
There is considerable turnover in farms. Older farmers getting out. Younger ones getting in, etc. Exit rates are 9-10 percent per year which is within 1 percentage point of the nonfarm small businesses (self employed-no employees).
All small businesses, not just farming, have a high exit (failure) rate. US farms and small businesses have not disappeared because the ENTRY rates, as well as the exit rates are high, too. The exit rates are highest for farmers age 65 or older.
Does this surprise anyone???? Can you say "retirement"? Does anyone wonder why these 'scare' stories never mention the fact that there are new, young people starting in farming at only slightly less than the retirement rate , and at more than the exit rates for all farmers?
Farms with product sales of $1,000.00 a year are considered a "small farm" and sales of $250,000.00 or more is considered a "large farm". "Newer" farms were more likely to go out of business than older ones, and "larger" farms were less likely to exit than were "smaller" farms.
98% of US farms are "family farms", defined as structured as proprietorships, partnerships, or family operations that do not have hired managers.
61% of US farms did not participate in any farm program in 2003, the point being that only a minority of farmers receive agricultural subsidies
Small farm households typically have substantial off-farm income and large and very large farms averaged off farm income of $30,000.00. I take the implication to be that the smaller farms had more than $30,000.00 annual off farm income. What do you think?
Those who attempt to incite "gloom and doom" over 'loss' of farmers or farms don't seem to consider that family farms could appear to be going out of business when the elder generation turns the operation over to the next, which/who also may not fit the definition of "young". Point: the farm generally is still being operated by someone, and is not necessarily a foreclosure of 'loss' of the farm, whether it continues, or it becomes part of another farm whose owners want to grow in size, possibly to accomodate additional family member/s. Larger point: many of those inciting such "gloom and doom" are doing so to promote their own political agenda. That agenda often includes loss of freedom to make sound business decisions or inflicts burdensome regulations, or both, and more difficulty making for family farmers in the guise of reining in "corporate" farmers.
BTW, The share of total agricultural production under contract (what some on this site refer to as being "serfs on your own land") grew by only 5% between 1994 and 2003, resulting in 2% total (that amount not considered "family farms", but it didn't seem clear to me).
mrj
About 717,000 farms in the US wentout of business between 1992 and 1997.
HOWEVER, the total number of FARMS declined by just 13,400 BECAUSE the number of entries into farming (707,700 farms) nearly equalled the exits. Further, the farm count has remained fairly stable since the 1974 census and we still have a bout 2,000,000 of them.
There is considerable turnover in farms. Older farmers getting out. Younger ones getting in, etc. Exit rates are 9-10 percent per year which is within 1 percentage point of the nonfarm small businesses (self employed-no employees).
All small businesses, not just farming, have a high exit (failure) rate. US farms and small businesses have not disappeared because the ENTRY rates, as well as the exit rates are high, too. The exit rates are highest for farmers age 65 or older.
Does this surprise anyone???? Can you say "retirement"? Does anyone wonder why these 'scare' stories never mention the fact that there are new, young people starting in farming at only slightly less than the retirement rate , and at more than the exit rates for all farmers?
Farms with product sales of $1,000.00 a year are considered a "small farm" and sales of $250,000.00 or more is considered a "large farm". "Newer" farms were more likely to go out of business than older ones, and "larger" farms were less likely to exit than were "smaller" farms.
98% of US farms are "family farms", defined as structured as proprietorships, partnerships, or family operations that do not have hired managers.
61% of US farms did not participate in any farm program in 2003, the point being that only a minority of farmers receive agricultural subsidies
Small farm households typically have substantial off-farm income and large and very large farms averaged off farm income of $30,000.00. I take the implication to be that the smaller farms had more than $30,000.00 annual off farm income. What do you think?
Those who attempt to incite "gloom and doom" over 'loss' of farmers or farms don't seem to consider that family farms could appear to be going out of business when the elder generation turns the operation over to the next, which/who also may not fit the definition of "young". Point: the farm generally is still being operated by someone, and is not necessarily a foreclosure of 'loss' of the farm, whether it continues, or it becomes part of another farm whose owners want to grow in size, possibly to accomodate additional family member/s. Larger point: many of those inciting such "gloom and doom" are doing so to promote their own political agenda. That agenda often includes loss of freedom to make sound business decisions or inflicts burdensome regulations, or both, and more difficulty making for family farmers in the guise of reining in "corporate" farmers.
BTW, The share of total agricultural production under contract (what some on this site refer to as being "serfs on your own land") grew by only 5% between 1994 and 2003, resulting in 2% total (that amount not considered "family farms", but it didn't seem clear to me).
mrj