| DECEMBER 17, 2011 -- Every year the USDA compiles facts on agriculture in America, from income to health insurance; from farm diversity to the aging of America’s ag producers. The facts tell a story that often isn’t shared in coffee shops or farm supply stores.
Across America, on-farm income for producers has been going up. Even with the rough weather year, that trend is expected to continue in 2011, with the average producer earning $55,405 from their agriculture operation by the end of this year, a 1.9 percent increase over last year.
Off-farm incomes. Across the U.S. 42 percent of producers and 40 percent of their spouses have some other source of income. Many of these off-farm incomes are generated by a second business. The most common off-farm business owned by ag producers is a construction or retail sales business.
For ag spouses, the most common fields of employment include education, construction and health services. These off-farm incomes, combined with on-farm incomes, help to increase ag producers’ total earnings.
Large operations. The USDA considers operations to be large if they have gross annual sales of $250,000 or more. These farms account for 10 percent of all agriculture operations yet they produce 80 percent of the commodities.
Forty-six percent of large ag operations are run by the producer and members of the producer’s family. The rest of the labor is supplied by hired help, 48 percent, and 6 percent by other means for getting the work accomplished - such as help from a neighbor or unpaid interns.
These large operations earned 74 percent of their income directly from the farm. Last year large operations saw their total income increase by 11.3 percent. In 2011, their total household income is expected to go up again - to an average of $215,920 from all sources.
Medium operations. The USDA considers ag operations to be medium if they gross between $10,000 and $249,999 in annual sales. This size accounts for 30 percent of all family ag operations and produces 18 percent of the nation’s commodities.
Medium operations are 80 percent run by the producer and members of the producer’s family. About 16 percent hire an outside employee and 4 percent use some other means for getting the work accomplished.
These medium operations received only 7 percent of their household income from their agriculture endeavors. The rest came from off-farm sources. Last year, these operations saw their total income increase by 11.6 percent. It is expected to rise again in 2011, to $75,713.
Small farms. The USDA considers operations to be small if they gross less than $10,000 in annual sales. Small operations account for 60 percent of all agriculture operations in the nation and produce 2 percent of the total commodities.
Small farms are 94 percent run by the producer and members of the producer’s family. Only 5 percent hire an outside employee and 1 percent use some other means for getting the work accomplished.
Small operations received all of their household income from off-farm sources, although they averaged higher-paying off-farm jobs than other family ag households.
Their income is expected to rise in 2011, to $70,436.
Taxes. In 2004, the last year the information has been made available, ag producers in the U.S. had an average income tax rate of 15 percent. About 60 percent of U.S. ag producers paid less than $50,000 in taxes that year.
For 2004, the total taxes paid by U.S. ag producers amounted to $42.5 billion. The breakdown included $21 billion in federal income taxes, $10.6 billion in Social Security and self-employment taxes, $4.9 billion in state and local property taxes, $5.1 billion in state and local income taxes, and $0.9 billion in federal estate taxes.
Commodities. Across the nation, 30 percent of ag operations are classified as beef cattle and 40 percent of agriculture operations are diversified.
Government payments. Nearly 40 percent of ag operations receive government payments. Most of those receive less than $10,000 in payments.
Farmers living in poverty. In the 1950s, half of all farm or ranch residents lived below the poverty line. That was more than double the national poverty level at that time. Today, that poverty rate has reversed itself and now fewer agriculture families are living in poverty than the national average. However, because ag families tend to be large, the number of individuals per 100 living in poverty in the U.S. is still higher for ag-residents than for non-farm residents.
The USDA notes that national poverty rates look only at income, not wealth. Many ag producer households with incomes below the official poverty thresholds still have more wealth than non-ag residents.
Farm wealth. Wealth is the difference between the value of the farm and ranch assets and the amount of debt. The average total wealth for an agriculture household is $915,019.
Non-farm assets. Producers have been wise with their income and have diversified even off the farm. The amount of non-ag assets owned by agriculture producers has grown to 24 percent. These non-farm assets include investment portfolios, retirement, business holdings, other assets and accounts.
Health care. In agriculture, 10.2 of all the people are uninsured. Since most ag producers are self-employed, 55 percent of ag families receive their health insurance through off-farm employers. Producers without off-farm employment options are more likely than the general population to directly purchase their health insurance from an insurance company, and are less likely to receive health insurance from a government-sponsored program, such as Medicare or Medicaid.
Farm injuries. Producers often work long hours in harsh weather conditions. They often work alone and a long way from medical care. Combine that with a variety of hazardous materials, powerful machinery, chemicals and livestock, and it is easy to understand why the U.S. Department of Labor has noted that agriculture has one of the highest fatality rates of all occupations.
In the United States in 2009, occupational fatalities ran 3.3 per 100,000 workers. The rate for those with farming or ranching as a major occupation was more than 10 times that figure - 38.5 per 100,000. Nearly three-quarters of the fatalities in agriculture operations occur in households where farming is the operator's major occupation.
Furthermore, the Department of Labor reports that fatal injuries have increased for farmers and ranchers in the last decade, while the fatality rate for all U.S. workers has steadily declined. The fatality rate for crop producers is twice that for animal producers.
Beginning farmers. More than a fifth of ag operations are run by individuals who have been farming for 10 years or less. Ninety percent of beginning farmers are more likely to be on small operations while 10 percent are jointly running medium and large operations in partnership with a more experienced operator. Across the board, beginning producers account for 10 percent of production.
Age of farmers. Since 1974, the average age of producers has been greater than 50. Currently, about 30 percent of producers are age 65 or older. As they age, many senior producers phase out slowly. They reduce the size of their farming operations, let younger family members take over more of the operation, or the older producers may focus on one specific area. Many older producers participate in the Conservation Reserve Program.
Across the U.S. a third of all producers are between 35 and 54 years of age; 4 percent are younger than 35 years; and 32 percent are between 55 and 64 years old.
Education of farmers. Most producers have graduated from high school and/or attended college for a few years. This is a change from the 1960s, when two-thirds of producers had not even completed high school because many felt education wasn’t necessary to run an agriculture operation.
Today, about one-quarter of all producers have graduated from college with a 4-year degree or more. Studies have shown that the attainment of a formal education contributes to a farmer's ability to adapt to the changing agricultural marketplace and to adopt new farming techniques. Higher education is also financially rewarding for those producers who are also employed off the farm.
Women on farms. Most producers are men but women producers now run 11 percent of all U.S. farming and ranching operations. Additionally, almost 40 percent of farms with more than one operator report that the additional operator is a woman. Across the board, women now run or assist in running 30 percent of all U.S. ag operators.
Ethnicity of farmers. Records show that 96 percent of all producers are white with 2.5 percent of that number being Hispanic. African Americans made up 1.4 percent of all operators; American Indians or Alaska natives, 1.6 percent; Asians, 0.5 percent; native Hawaiian or Pacific Islander, 0.1 percent, those reporting more than one race made up the remainder. |
