The latest snapshot of U.S. agriculture shows that small family farms are numerically dominant but increasingly dependent on off-farm income, while larger operations generate the majority of production value.
In America’s Farms and Ranches at a Glance: 2025 Edition, the USDA Economic Research Service (ERS) reports that in 2024, the U.S. had 1.87 million farms operating 880.4 million acres, generating $500.9 billion in production value. Small family farms accounted for 86% of all farms but operated only 40% of farmland and produced just 17% of total output value.
By contrast, large-scale family farms—only 5% of farms—operated 33% of farmland and produced 50% of total production value. Midsize family farms represented 6% of farms, operating 18% of land and contributing 18% of production value, while nonfamily farms made up 3% of operations and 14% of output.
Commodity production is similarly concentrated. Large-scale family farms accounted for 73% of dairy production value, 58% of specialty crops, 52% of beef and cotton, and 51% of cash grains and soybeans in 2024. Small family farms remained important in hay (51% of production value) and poultry and eggs (35%), while midsize farms played a notable role in hogs (32%) and poultry and eggs (27%).
The report defines a family farm as one in which the producer and related individuals own the majority of the business and classifies operations by ownership structure and gross cash farm income (GCFI). Farms are first divided into family and nonfamily operations, with family farms further grouped by size: small (less than $350,000 GCFI, including low sales under $150,000 and moderate sales of $150,000-349,999), midsize ($350,000-999,999), large ($1 million-4.9 million) and very large ($5 million or more).
Farm receipts
ERS reported total cash receipts for all commodities nationwide reached $513.6 billion in 2024. California led the nation with $61.1 billion in receipts, representing 11.9% of U.S. receipts. Iowa followed at $38.4 billion (7.5%), Nebraska at $32.1 billion (6.2%), Texas at $30.4 billion (5.9%), and Kansas at $24.3 billion (4.7%). The top 10 states together accounted for 53.9% of total U.S. receipts.
Cattle and calves receipts reported by ERS show the geographic concentration of livestock production. Nebraska ranked first at $17.8 billion (15.9% of U.S. cattle receipts), followed by Kansas at $14.8 billion (13.2%) and Texas at $13.6 billion (12.2%). Colorado, Oklahoma, South Dakota, Idaho and Missouri also ranked among the top 10 cattle-producing states.
Financial risk and income
Despite strong aggregate receipts, profitability remains strained. USDA-ERS reports that 71% of farms operated in the high-risk category in 2024, defined as having an operating profit margin below 10%, up from 69% in 2023.
Small family farms were especially vulnerable. Eighty-two percent of low-sales farms, 75% of off-farm occupation farms and 62% of retirement farms fell into the high-risk zone. Very large family farms were the most financially resilient, with 76% operating in low- or medium-risk categories.
Debt levels also rose with scale. The report reported that very large family farms carried an average conditional debt of $3.9 million in 2024, but maintained a relatively low debt-to-gross cash farm income ratio of 0.4. Smaller farms had lower absolute debt but, in many cases, higher leverage relative to income.
Farm household wellbeing continues to reflect a contrast between income and wealth. In 2024, 42% of family farm households had incomes below the U.S. median of $83,730, yet only 2% had wealth below the national median. Across all family farms, 86% of households earned more than half their total income from off-farm sources. Among small family farms, at least 90% of retirement, off-farm occupation and low-sales operations relied primarily on off-farm earnings.
Small family farms received 46% of all government agricultural payments in 2024, including 73% of Conservation Reserve Program payments. Large-scale family farms received 46% of countercyclical payments tied to commodity programs.
Federal crop insurance participation was concentrated among larger operations. Large family farms received 45% of indemnities and midsize farms 22%, while off-farm occupation farms accounted for 18% of participants but just 3% of indemnities.
Bankruptcies show strain
The broader financial pressures are also reflected in bankruptcy data compiled by the American Farm Bureau Federation (AFBF). Chapter 12 farm bankruptcies rose for the second consecutive year, reaching 315 filings in 2025—a 46% increase from 2024.
According to AFBF, the Midwest and Southeast were hardest hit, with 121 and 105 filings, respectively. Arkansas led the nation with 33 filings, more than double the prior year. Georgia followed with 27 filings, up 145%, while Iowa, Nebraska, Missouri, Wisconsin and Minnesota all posted sharp increases.
AFBF notes that the growing reliance on credit reflects tightening margins, with USDA projecting total farm debt to climb 5.2% to a record $624.7 billion in 2026, as farmers expand operating lines primarily to cover higher input costs rather than for new investments.
Citing Federal Reserve Bank of Kansas City data, AFBF reports that nearly 40% more new operating loans were opened in the fourth quarter of 2025 compared to 2024, while the average operating loan grew 30% larger and extended three months longer in maturity.
Machinery and equipment loans are also stretching out to the longest repayment terms since 2021, even as interest expenses are expected to hit a record $33 billion in 2026, further tightening cash flow.
AFBF warns that with Chapter 12 bankruptcies rising and farm income projected to decline for a fourth consecutive year, mounting debt and limited eligibility for bankruptcy protections could accelerate both farm closures and consolidation across rural America. — Charles Wallace, WLJ contributing editor
