By Jamie Martin
The U.S. Department of Agriculture (USDA) reports that small farms remain essential to both the national food system and the stability of rural communities. Faith Parum, an economist with the American Farm Bureau Federation, explains that the USDA classifies a small farm as one earning under $350,000 in gross cash farm income annually. This figure reflects total revenue before costs. With typical expenses of about $200,000, many small farms ultimately earn only around $45,000.
Parum emphasizes that the term “small farm” is different from “family farm.” The former measures financial size, while the latter describes who owns and operates the farm. Nearly 86 percent of American farms qualify as small by income, and about 97 percent are family owned, whether by individuals or partnerships.
Beyond producing food, small farms serve as economic lifelines for rural regions. They create jobs, generate steady revenue, and help keep vital institutions such as schools, hospitals, and small businesses open. Parum notes, “They sustain these communities in terms of revenue into the community, but also jobs, workforce.”
By supporting services and providing employment, small farms ensure rural communities remain vibrant places to live and work. Their combined contributions prove that even with limited size and income, small farms are key to the health of the U.S. farm economy and the well-being of families across the nation.
Photo Credit: usda
Categories: National