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. more overview.....

feature
Economic and Structural Relationships in U.S. Hog Production—Rapid change in the size and ownership structure of U.S. hog production has created new and varied challenges for the industry. This report describes an industry becoming increasingly concentrated among fewer and larger farms, and becoming more economically efficient. These changes have not come without problems. The increasing market control and power concentrated among packers and large hog operations, and the manure management problem posed by an increasing concentration of hog manure on fewer operations, are paramount concerns. Addressing these concerns through regulations would likely impose economic costs that could be passed on to consumers. In addition, the relative mobility of the hog industry means that regulations could result in significant changes in the location of hog production facilities, with ripple effects in local economies. Balancing environmental and economic interests will challenge policymakers dealing with the implications of structural change in U.S. hog production. (2/03)

recommended readings

Characteristics and Production Costs of U.S. Rice Farms — Regional differences in production practices, farm characteristics, and growing conditions were major influences on production costs among U.S. rice producers in 2000. Three-quarters of rice production was concentrated on large and very large farms, categories that included nearly two-thirds of all rice farms, but the link between size of enterprise and production costs for rice is weaker than for other commodities. At the marketing-year average price of $5.61 per hundredweight, 78 percent of rice farms were able to cover operating costs and 43 percent covered both their operating and ownership costs of rice production in 2000. After accounting for Government payments, nearly all rice farms (97 percent) were able to cover operating costs in 2000, and about 84 percent were able to cover both operating and ownership costs. (03/04)

Characteristics and Production Costs of U.S. Dairy Operations —The total costs of producing milk vary across the U.S. Milk producers in the West had a significant cost advantage in 2000 over producers in other regions because their operations were much larger. Operations with 500 or more milk cows had significantly lower operating and ownership costs, indicating economies of size. Also, differences in animal performance, feed efficiency, and labor efficiency were critical in determining whether producers were in the low- or high-cost group for producing milk. (02/04)

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. Agriculture Fact Book 2001-2002 (2/03).


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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 Operator Household Income Data—Current and historical data for farm operator households.

Farm Typology Data—Current info about farm household finances and the structural characteristics of U.S. farms, classified by the ERS typology.

Household Financial Characteristics—Detailed information about farm operator households' sources of income and wealth. Now updated to 2001.

Farm Structural Characteristics—Includes both farm characteristics (such as farm size) and characteristics of the operator (such as age and education). Now updated to 2001.

recent research developments
Lists current research related to farm structure. Includes recent papers presented.

related briefing rooms

• ARMS
• Bankruptcies
• Farm financial management
• Farm income and costs
• Federal taxes
• Food market structures
• Lenders and financial markets
• Organic farming and marketing
  

related links
Trends in U.S. Agriculture—Charts and supporting data highlighting trends in farm numbers, land 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.

for more information, contact: David Banker or Robert Hoppe or Doris Newton
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page updated: August 17, 2004