AgWeb's Margy Eckelkamp recently reported that family farms continue to hold a significant position in the U.S. farm landscape. In 2023, they accounted for about 96% of total farms and 83% of total production. This data was published in the USDA's Economic Research Service's 2024 edition of 'America's Farms and Ranches at a Glance', which provides a snapshot of the farm economy based on survey data from the end of 2023.

Family Farm Characteristics and Differentiation

The study breaks down different characteristics of farms by type. Family farms are defined as those where the majority of the business is owned by an operator and/or related individuals. Most U.S. farms (86%) are small family farms with a Gross Cash Farm Income (GCFI) less than $350,000. These farms operate on 41% of agricultural land and contribute 17% to the total value of production. On the other hand, large-scale family farms (GCFI of $1,000,000 or more) accounted for 48% of the total value of production and 31% of agricultural land in 2023.For example, in terms of cash grains and soybeans production, large-scale family farms accounted for 52% of the value. Small family farms produced 45% of the value of hay and 46% of the total value of U.S. poultry and egg output. In beef production, 22% occurred on small family farms, while 39% was on large-scale family farms. Small family farms often have cow-calf operations, while large-scale ones are more likely to operate feedlots.

Government Payment Programs and Family Farms

When it comes to government payment programs, the percentage of farms receiving payments varies. Small family farms had a 21% rate, while midsize and large family farms had a 44% rate. Small family farms received 76% of all payments from the USDA's Conservation Reserve Program (CRP). Midsized and large-scale family farms accounted for 66% of the total value of production and received 71% of countercyclical-type payments, including Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC), and 61% of all other payments like Dairy Margin Coverage, agricultural disaster, and ad-hoc payments.

Precision Agriculture and Family Farms

Successful Farming's Chuck Abbott reported that about 68% of large crop farms use precision agriculture technology. This technology generates information that helps operators make decisions, such as yield monitors, yield maps, and soil maps. Large operators adopt precision agriculture to increase yields, reduce input costs, and reduce operator fatigue. By contrast, few small farms use this technology as adoption increases with farm size because larger farms can benefit more from it. Last year, the USDA reported that 27% of crop and livestock farms used at least one form of precision agriculture, an increase of 2 percentage points in two years. The equipment has been available since the 1990s but is often expensive. Precision agriculture allows row-crop farmers to track production from relatively small plots and adjust inputs accordingly.In conclusion, family farms play a crucial role in the U.S. farm economy, with different sizes and characteristics having distinct impacts on various aspects such as production and government payments. Precision agriculture also shows different usage rates among different-sized family farms, highlighting the evolving nature of the agricultural industry.