A USDA report released March 20 finds that consolidation is rampant across agricultural sectors, affecting nearly all crops and most livestock.
The report notes that average farm size no longer provides an accurate indication of crop or livestock production. Just looking at the number of farms or average acreage, it says, is “not representative of the mass of very small farms or of the large farms that account for most acreage, livestock, and production.”
The largest farms account for a higher percentage of farm production today than they did in prior decades. In 1991, farms with at least $1 million in sales accounted for 31 percent of farm production, compared with 51 percent in 2015. The number of farms with a value of agricultural products greater than $1 million rose 136 percent between 1987 and 2012.
What’s more, farm production is being concentrated onto bigger farms. In 1987, 15 percent of cropland was on farms of at least 2,000 acres. By 2012, that number had risen to 36 percent. These consolidation trends were observed across 53 of the 55 crops reviewed by researchers. There has also been a concurrent drop in the number of different crops grown on the average farm.
The trends in livestock are slightly different, with consolidation happening episodically rather than gradually over time. The report notes that a lower percentage of beef cattle are raised on farms of more than 10,000 acres today than in prior decades, suggesting a decrease in consolidation in that sector. It’s worth noting, though, that consolidation among beef packers has risen dramatically, with farmers sometimes having to choose between just two buyers for their cattle. In some regions, there’s only a single buyer available.
The report also notes that corporate-owned farms represent over 20 percent of farms with more than $5 million in sales, though they represent just 4 percent of farms overall.