AFBF Highlights The Role Small Farms Play In Ag Economy

Small farms are often at the center of the discussion around healthy food, but what does that actually mean?

USDA defines small farms as farms with less than $350,000 of gross cash farm income; that's income before expenses.  But, Faith Paruman, American farm Bureau Federation economist was quick to point out that expenses for small farms often top $200,000, meaning those operators only take home around $45,000.  She added while some may use 'small farm' and 'family farm' interchangeably, they do not have the same definition.

“Small farm refers to the size of the operation. So like I mentioned earlier, that's how much money they are making in gross cash farm income," Paruman noted.  "And 86% of all farms are considered small. Family farm refers to the ownership structure. So that's how they're legally set up. 97% of all farms are family owned, that can be owned through a partnership or individual families, but they are owned in those family structures."

Small Farms Have A Big Impact

She adds that small farms play a big role in the overall Ag economy.

“They sustain these communities in terms of revenue into the community, but also jobs workforce," Paruman said.  "They help keep schools and hospitals and local businesses open and so without these smaller farms, rural communities would really struggle to maintain the services that make them viable places to live and work and raise your family.”

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