USDA highlights the economic role of small farms
Recent information from the United States Department of Agriculture (USDA) highlights how important small farms are to America’s food system and rural economy. Economist Faith Parum of the American Farm Bureau Federation explains that the USDA defines small farms as operations earning less than $350,000 in gross cash farm income each year. This amount represents total income before costs. Because expenses often exceed $200,000, many small farms bring home only about $45,000 annually.
Parum notes that the term “small farm” differs from “family farm.” A small farm is defined by its income size, while a family farm refers to ownership structure. Family farms can be individually owned or operated through a partnership. According to USDA data, about 86 percent of U.S. farms are considered small based on income, and an impressive 97 percent are family owned.
These small farms contribute far more than food production. They support local economies by creating jobs, generating revenue, and keeping schools, hospitals, and local businesses active. “They sustain these communities in terms of revenue into the community, but also jobs, workforce,” Parum explains. Without small farms, many rural towns would struggle to maintain the services that make them livable for families.
Small farms remain a cornerstone of America’s agriculture and community life. They provide fresh food, preserve traditions, and maintain the vibrancy of rural areas. Their impact extends well beyond their size, ensuring that the nation’s food supply and rural culture stay strong for future generations.
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