Overview
Farm structure underlies the efficiency and competitiveness
of the farm sector, the well-being of farm households,
the design of public policies, and the nature of rural
areas. Farm structure
covers a variety of topics, including the number and
size of farms, concentration of production, tenure,
farm organization, business arrangements (including
contractual agreements), and the characteristics of
farmers and their households. Farm structure both affects
and is affected by public policy and the economy at
all levels. The ERS research program in this area seeks
to identify and analyze the key factors affecting farm
structure. It includes a descriptive component focused
on the development of appropriate information to define
the elements of structure, to measure those elements,
and to summarize changes in structure through time.
Features
 The
Economic Organization of U.S. Broiler Production—Broiler production in the United States is coordinated almost entirely
through systems of production contracts, and the industry
is undergoing a gradual structural change as production shifts
to larger broiler enterprises. This report, based on a large
and representative survey of broiler operations, describes
the industry's organization, housing features, contract design,
fees and enterprise cost structures, and farm and household
finances.
 Agricultural Contracting
Update, 2005—More than half of all transactions for U.S.
agricultural products are still conducted through spot market exchanges,
in which commodities are bought and sold in open market
transactions for immediate delivery. But a growing share
of U.S. farm production is produced and sold under agricultural contracts.
The shift of production to contracting coincides with shifts of production
to larger farms.
 Understanding
U.S. Farm Exits—The rate at which U.S. farms go out of business,
or exit farming, is about 9 or 10 percent per year, comparable
to exit rates for nonfarm small businesses in the United States. The
probability of exit is higher for recent entrants than for older,
more established farms. Farms operated by Blacks are more likely to
exit than those operated by Whites, but the gap between Black and
White exit probabilities has declined substantially since the 1980s.
Exit probabilities differ by specialization, with beef farms less
likely to exit than cash grain or hog farms.
 Structure
and Finances of U.S. Farms: Family Farm Report, 2007 Edition.
This report presents comprehensive information on family
and nonfamily farms and important trends in farming,
operator household income, farm performance, and contracting.
Most farms are family farms, and small family farms
account for most farms but produce a modest share of
farm output. A companion
brochure summarizes the report's findings. See also the related
Amber Waves feature on The Importance of Farm Program Payments to Farm Households
Growing Farm Size and the
Distribution of Farm Payments—Changes in U.S.
farm structure may have wide-ranging effects on the
distribution of benefits from farm programs. We examine
one specific development: shifts of production to larger
farms have driven important changes in the distribution
of government commodity payments, shifting them to
much higher-income households. Since the change in
farm structure appears to be ongoing, commodity payments
will likely, under current policies, continue to shift
to higher income households.
Recommended Readings
Characteristics
and Production Costs of U.S. Hog Farms, 2004—Hog production in 2004 was characterized by wide variation in the types, sizes,
and economic performance of operations. Operations specializing in a single production
phase generated more than three times the product value, on average, of those
using the traditional farrow-to-finish approach. Low-cost operations tended to
be larger, located in the Heartland, and operated by farmers whose primary occupation
was farming. See also The
Changing Economics of U.S. Hog Production.
Profits,
Costs, and the Changing Structure of Dairy Farming—U.S. dairy production is consolidating into fewer but larger farms. This report
uses data from several USDA surveys to detail that consolidation and to analyze
the financial drivers of consolidation. Specifically, larger farms realize lower
production costs.
Characteristics and
Production Costs—This series of reports
examines how production costs vary among producers
of different commodities, including production
practices, input use levels (i.e., the technology
set), and farm operator/structural characteristics.
The reports also illustrate the degree to which
costs vary for producers of different commodities
and indicate possible reasons for the variation.
Characteristics and production costs are examined
for low- and high-cost producers of each commodity,
and producers of varying size, region, and typology
classification:
- Characteristics
and Production Costs of U.S. Hog Farms, 2004, December 2007.
- Characteristics
and Production Costs of U.S. Corn Farms, 2001, February 2006.
- Characteristics
and Production Costs of U.S. Rice Farms, March 2004.
- Characteristics
and Production Costs of U.S. Dairy Operations, February 2004.
- Characteristics
and Production Costs of U.S. Wheat Farms, July 2002.
- Characteristics
and Production Costs of U.S. Soybean Farms, April 2002.
- Characteristics
and Production Costs of U.S. Cow-Calf Operations, November 2001.
- Characteristics
and Production Costs of U.S. Cotton Farms, October 2001.
- Characteristics
and Production Costs of U.S. Corn Farms, September 2001.
American
Farms—The number of farms has fallen dramatically
since its peak in 1935. In the meantime, the number
of large farms has grown, which means that large
farms now form a larger share of the total U.S. farms.
Nevertheless, most of the remaining farms are family
run businesses with sales less than $250,000. The
diversity of today's farms has some implications
in farm policy discussions. From the Agriculture Fact
Book 2001-2002.
See all recommended readings...
Questions and Answers
Commonly asked questions
about farm structure,
farm characteristics
(including off-farm income, small and minority farmers),
agricultural contracting,
and corporate farming.
Recommended Data Products
 Farm
Business and Household Survey Data: Customized Data
Summaries from ARMS—Use this new dynamic
web-based data delivery tool to learn about agriculture
online: farming practices, commodity production costs
and returns, the economics of the farm business, the
structure of American farming, and the characteristics
of the American farm household. Get tailored reporting
on agricultural production technology, farm business
viability, and the structure of U.S. agriculture from
the very latest information gleaned from ARMS-including,
for the first time, data for 15 selected States as
well as the nation as a whole. Access all ARMS
data, including that previously provided in the Farm
Financial Management and the Crop Production Practices
data products.
Deriving Operator
Household Income, recent years—This spreadsheet
provides the data used to derive recent as well as forecasted
U.S. average income to farm operator households.
Historic
Data on Farm Operator Household Income—Operator
household income data prior to 1996, including a time
series back to 1960.
Related Briefing Rooms
Related Links
Trends
in U.S. Agriculture—Charts and supporting data
highlighting trends in farm numbers, and values, commodity
production from the early 1900s.
History
of American Agriculture—A poster highlighting
U.S. agricultural history back to colonial times.
National Agricultural
Statistics Service—A wide range of survey-based
information about U.S. agriculture.
Census of Agriculture—Detailed
data on farm operations in the United States, conducted
every 5 years, including commodity production, inventory,
land operated, income, expenses, farm assets, and operator
and operation characteristics. Data are available electronically
at the U.S., State, and county levels.
See all related links...
Glossary
Check the glossary for explanations
of the economic terms and concepts used throughout the
briefing room.
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