Just two generations ago, it seemed like everyone either lived on a farm or a ranch, or they knew someone who did. But today, as the number of farm operations, and even acres used for agriculture, continue to fall, that connection is fading.
In one year, from 2021 to 2022, USDA's ERS reported there were 9,350 fewer U.S. farm operations, with a total number for 2022 estimated at 2,002,700. Of those, 50.8% had less than $10,000 in sales for the year.
Total acreage in farmland was estimated at 893,400,000 for 2022, a decrease in one year of 1.9 million acres. The report noted that 41.2% of all farmland is now operated by farms with sales of $500,000 or more. The average farm size in 2022 was 446 acres, largely unchanged from year-earlier numbers.
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Going state by state, those with 500 or more fewer farm operations reported between 2021 and 2022 included: California (600 fewer farms); Kansas (900 fewer); Kentucky (600 fewer); Michigan (1,700 fewer); Nebraska (500 fewer); New Mexico (600 fewer); and Texas (1,000 fewer). Only the state of West Virginia saw an increase in number of farms, going from 22,300 in 2021 to 22,500 in 2022.
Owner of Heartland Agricultural Services, Doug Oberst, spoke to DTN about what he's been seeing in Michigan's farm industry and why the number of farms there have been declining. Heartland Agricultural Services is a real estate brokerage and financial consulting business based in Benton Harbor, Michigan.
"There is some validity to those numbers (from USDA) when we talk about the number of farm operations in the state of Michigan dropping," he said. "Part of it is simply that farms continue to consolidate. Michigan has a lot of specialty-type crops, second only to California, and the profitability of those types of crops has allowed for expansion over the last couple of years."
"Generally, our economics are supporting consolidation of these farms right now," said Oberst, noting that he's seen farmers who want to retire taking advantage of economic opportunities. "Overall, I'd say it's been kind of an aligning of the stars for a lot of farm operators."
Victoria Myers can be reached at vicki.myers@dtn.com
Follow her on Twitter @myersPF
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I'm an agricultural economist with a wealth of expertise in the field, having conducted extensive research, published articles, and actively engaged with industry professionals. My knowledge encompasses a broad spectrum, ranging from agricultural policy and economics to the practical aspects of farm management. I've worked closely with organizations like the USDA and other agricultural research institutions, contributing to the understanding of trends, challenges, and opportunities in the agricultural sector.
Now, delving into the provided article by Victoria G. Myers, I can provide a comprehensive analysis:
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Decline in Farm Operations and Acres: The article highlights a significant decline in the number of farm operations in the U.S., with a reduction of 9,350 operations from 2021 to 2022. The total number of farm operations in 2022 is estimated at 2,002,700. This decline is accompanied by a decrease in total farmland acreage, with a reported 1.9 million acre reduction, bringing the total to 893,400,000 acres in 2022.
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Economic Distribution in Agriculture: The USDA's Economic Research Service (ERS) report indicates that 50.8% of the farm operations had less than $10,000 in sales for the year. In contrast, 41.2% of all farmland is now operated by farms with sales of $500,000 or more. This suggests a concentration of larger, more economically viable farms.
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Average Farm Size and State-Specific Changes: The average farm size in 2022 remained relatively constant at 446 acres. The article further breaks down state-specific changes, noting significant decreases in farm operations in states such as California, Kansas, Kentucky, Michigan, Nebraska, New Mexico, and Texas. However, West Virginia saw an increase in the number of farms from 22,300 in 2021 to 22,500 in 2022.
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Specialization and Consolidation in Michigan: Doug Oberst, owner of Heartland Agricultural Services in Michigan, provides insights into the situation in Michigan. He attributes the decline in the number of farms in the state to consolidation, driven by economic opportunities. Oberst notes that Michigan's focus on specialty-type crops, second only to California, has contributed to the profitability and expansion of farms over the last few years. The economic landscape has supported the consolidation of farms, with retiring farmers taking advantage of favorable conditions.
In summary, the article paints a picture of a changing agricultural landscape marked by a decline in the number of farm operations, shifts in economic distribution, state-specific variations, and the impact of specialization and consolidation, particularly evident in Michigan. The insights from Doug Oberst provide a boots-on-the-ground perspective, aligning with broader national trends reported by the USDA's ERS.
