A financially viable farm business can require control of substantial assets, posing a major obstacle to potential new farmers or ranchers. Several U.S. Department of Agriculture (USDA) programs are designed to support the special needs of beginning farmers and ranchers, including financial support in the form of loans and higher conservation payment rates.
What Is the Issue?
Policymakers have responded to the perceived needs of beginning farmers and ranchers by designing and proposing targeted programs. To target USDA’s beginning farmer programs more effectively, basic information is required on the numbers and characteristics of beginning farmers and ranchers. Comparing the characteristics of beginning farmers with more established farmers may help provide such information, specifi cally on how beginning farmers acquire control of the land they operate and on the sources of household income (farm or off-farm).
USDA’s defi nition of a farm encompasses a large number of different farming operations, and the beginning farmer defi nition is, likewise, broad. USDA’s current defi nition of a beginning farm is one operated by a farmer who has not operated a farm or ranch for more than 10 years. The 10- year requirement applies to all operators of the farm or ranch. The defi nition includes as farmers and ranchers many whose only goal is to provide a household residence, rather than a business operation. This report considers the beginning farmers and ranchers both with and without a commercial focus, based on whether or not they produced any agricultural commodities.
What Did the Study Find?
The concentration of farms with a principal operator who is a beginning farmer or rancher varies across the United States, ranging from 4 percent in some counties to more than half of all farms in other counties. Approximately a fi fth of all farms have a principal operator who is a beginning farmer. Beginning farmers account