harddriver
Well-known member
https://www.fb.org/market-intel/over-140-000-farms-lost-in-5-years
Between 2017 and 2022, the number of farms in the U.S. declined by 141,733 or 7%, according to USDA’s 2022 Census of Agriculture, released on Feb. 13. Acres operated by farm operations during the same timeframe declined by 20.1 million (2.2%), a loss equivalent to an area about the size of Maine. Only 1.88% of acres operated and 1% of farm operations were classified under a non-family corporate farm structure.
Farmers and ranchers currently face the highest production expenses on record, in addition to increasingly complex local, state and federal regulations and growing competition from lower-cost foreign markets. These dynamics shrink margins for producers and often more significantly impact farms in lower economic classes. Farms that are able often expand in size to capitalize on economies of scale, a concept rooted in the efficiency often gained as production increases. Larger farms can benefit from reduced per-unit costs due to bulk input purchasing, streamlined operations and enhanced bargaining power with suppliers. Mechanization and modern technology, which often come with substantial upfront costs, are more economically justifiable for larger operations, further boosting productivity. Unsurprisingly, the latest census data underscores that farms making such investments tend to fare better. Notably, farms in the $0 -$4,999 and $5,000 -$49,999 economic classes, constituting over 70% of total farms, often rely on alternative income sources. Those in the $0 - $4,999 economic class, especially, are more likely to be operations participating in agriculture for leisure or personal interest as opposed to income reliance. Declines in operations in these categories may be linked to the cost associated with supporting a side business that may no longer be sustainable but has limited impacts on total domestic food production.
https://www.fb.org/market-intel/net-farm-income-in-2024-forecast-to-be-down-25-from-last-year
Between 2017 and 2022, the number of farms in the U.S. declined by 141,733 or 7%, according to USDA’s 2022 Census of Agriculture, released on Feb. 13. Acres operated by farm operations during the same timeframe declined by 20.1 million (2.2%), a loss equivalent to an area about the size of Maine. Only 1.88% of acres operated and 1% of farm operations were classified under a non-family corporate farm structure.
Farmers and ranchers currently face the highest production expenses on record, in addition to increasingly complex local, state and federal regulations and growing competition from lower-cost foreign markets. These dynamics shrink margins for producers and often more significantly impact farms in lower economic classes. Farms that are able often expand in size to capitalize on economies of scale, a concept rooted in the efficiency often gained as production increases. Larger farms can benefit from reduced per-unit costs due to bulk input purchasing, streamlined operations and enhanced bargaining power with suppliers. Mechanization and modern technology, which often come with substantial upfront costs, are more economically justifiable for larger operations, further boosting productivity. Unsurprisingly, the latest census data underscores that farms making such investments tend to fare better. Notably, farms in the $0 -$4,999 and $5,000 -$49,999 economic classes, constituting over 70% of total farms, often rely on alternative income sources. Those in the $0 - $4,999 economic class, especially, are more likely to be operations participating in agriculture for leisure or personal interest as opposed to income reliance. Declines in operations in these categories may be linked to the cost associated with supporting a side business that may no longer be sustainable but has limited impacts on total domestic food production.
https://www.fb.org/market-intel/net-farm-income-in-2024-forecast-to-be-down-25-from-last-year
