By Samantha Ayoub and Faith Parum
When people are asked what a “small farm” is, they may base their answer on the number of acres or number of animals a farm has – and they often assume that there aren’t many of them. However, small, family-owned farms continue to dominate the makeup of American farms and ranches across the country.
USDA considers any place that has at least $1,000 of agricultural product sales as a farm. The Census of Agriculture reports 25% of farms with no sales in any year, and 30% with less than $10,000 in sales. Regardless, these farms are important community members and may be contributing to the local food system. With such variation in farm size and structure nationwide, USDA considers small farms as those with less than $350,000 of gross cash farm income (GCFI), regardless of whether the owner’s primary job is farming.
It’s important to note that GCFI, discussed in detail below, is not a measure of profit. Recent forecasts of net farm income show warning signs for farmers nationwide. Even with projected rebounds in 2025, crop receipts are expected to decline while livestock gains only partly offset rising costs. For small farms that already operate on thin margins, these trends highlight just how challenging it can be to keep operations viable year after year.
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