A new report from the Department of Agriculture’s Economic Research Service found that as much as 75 percent of small farms in the U.S. are experiencing serious financial risks, compared to around 30 percent of large farms. The report, “America’s Diverse Family Farms,” concluded that despite their high level of risk, small farmers are also less likely to receive government farm supports, which disproportionately are allocated towards large-scale farms. The report also found that net farm income is at a five-year low.
Small farms comprise about 90 percent of all farms but produce just around 20 percent of agricultural sales. Large farms, on the other hand, comprise just 2 percent of all farms but account for over 45 percent of agricultural sales. Mid-size farms comprise just 6 percent of all farms. Small farms are more likely to be found in certain sectors—they represent 58 percent of poultry producers and 50 percent of hay producers.
Because so many farm families seek income off the farm, the report also emphasized that other policies—like tax reform, economic development, and social programs—can be just as important to rural farm families as farm policy.