The number of farms in the US is growing, but the average size of an American farm is shrinking.

An article titled, “Not your father’s farm” from the May 2009 edition of the fedgazette, a publication from The Federal Reserve Bank of Minneapolis, highlights the changes that are happening to farms; particularly the size and number of them.

In the past five years, the number of US farms increased by 4%, and interestingly enough, the average farm size itself, shrunk. According to the USDA, the number of very large farms has increased along with an even bigger increase in the number of small, hobby farms. Every state in the bank’s 9^th district experienced an increase in the number of farm operations, except South Dakota. South Dakota also was the only state that didn’t see their average farm size decrease.

This chart shows how the sizes of farms have changed from 1997 to 2007. The smallest and largest farms are becoming more popular.

 

On the other hand, South Dakota is experiencing a decline in the number of farms and an increase in the size of farms. South Dakota’s medium-sized farms are still shrinking though.

These hobby farms are becoming more popular. Here are some facts on these “trendy” farms:

·         They account for nearly 60% of US farms, yet they don’t even account for 10% of agricultural sales

·         In Rice County, Minnesota, near the Twin Cities, the number of farms increased 15% while their average farm size shrunk by 12%

·         In Glacier County, Montana, the number of farms increased by 32%, but had a 22% drop in average acres

·         The Upper Peninsula of Michigan is one of the most popular places to start a hobby farm

·         Medium-sized farms are disappearing

“It’s actually a bimodal change; we’re seeing growth in the big and the small at the expense of those between,” claims Richard Rathge, a rural demographer at North Dakota State University. In the last 10 years, North Dakota has seen a 25% decrease in farms between 500 and 2,000 acres.

What does this equate to?

Country life is changing. People that have lived in urban settings are beginning to consider moving to rural areas and starting a small hobby farm. This rise in demand for small farms could raise small farm prices. In addition, big farms are always looking to expand their operations and they are going to be interested in snagging up any farmland for sale as well.