Small farm
Encyclopedia
The definition of a small farm has varied over time and by country. Agricultural economists
have analyzed the distinctions among farm sizes since the field's inception. Traditional agricultural economic theory considered small farms inefficient, a stance that began to be challenged in the 1950s. An overview of research published by the World Bank
in 1998 indicated that the productivity of small farms often exceeded that of larger ones.
, defined a small farm as one with sales under $20,000. At the time these comprised 70% of farms in the US. The Act sponsored additional research on small farming operations by US land grant universities and their extension services
and mandated that an annual report on these activities be issued by the US Secretary of Agriculture. A 1997 study by the United States Small Farms Commission defined small farms as those with less than $250,000 in gross receipts annually on which day-to-day labor and management are provided by the farmer and/or the farm family that owns the production, or owns or leases the productive assets. In 2000, such farms accounted for about 90% of the more than 2.1 million U.S. farms, but only about 40% of U.S. farm production.
The concentration of production on fewer and larger operations is a longstanding concern among some segments of the agricultural community. Others view these changes as inevitable, and even necessary to maintain the efficiency and competitiveness of the sector.
Farm typology
analysis by the USDA Economic Research Service
divides the small family farm category into five groups:
is ongoing. As of 2009, it had not established a formal definition of the term that could be used in its Common Agricultural Policy
, although public perception of their possible benefits has led to requests for further studies from the European Commission
.
Agricultural economics
Agricultural economics originally applied the principles of economics to the production of crops and livestock — a discipline known as agronomics. Agronomics was a branch of economics that specifically dealt with land usage. It focused on maximizing the crop yield while maintaining a good soil...
have analyzed the distinctions among farm sizes since the field's inception. Traditional agricultural economic theory considered small farms inefficient, a stance that began to be challenged in the 1950s. An overview of research published by the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
in 1998 indicated that the productivity of small farms often exceeded that of larger ones.
United States
Several definitions of the term have been formulated in legislation. In 1977 the US Congress, via the Food and Agriculture Act of 1977Food and Agriculture Act of 1977
The United States Food and Agriculture Act of 1977 was an omnibus farm bill. It increased price and income supports and established a farmer-owned reserve for grain. It also established a new two-tiered pricing program for peanuts. Under the peanut program, producers were given an acreage...
, defined a small farm as one with sales under $20,000. At the time these comprised 70% of farms in the US. The Act sponsored additional research on small farming operations by US land grant universities and their extension services
Cooperative extension service
The Cooperative Extension Service, also known as the Extension Service of the USDA, is a non-formal educational program implemented in the United States designed to help people use research-based knowledge to improve their lives. The service is provided by the state's designated land-grant...
and mandated that an annual report on these activities be issued by the US Secretary of Agriculture. A 1997 study by the United States Small Farms Commission defined small farms as those with less than $250,000 in gross receipts annually on which day-to-day labor and management are provided by the farmer and/or the farm family that owns the production, or owns or leases the productive assets. In 2000, such farms accounted for about 90% of the more than 2.1 million U.S. farms, but only about 40% of U.S. farm production.
The concentration of production on fewer and larger operations is a longstanding concern among some segments of the agricultural community. Others view these changes as inevitable, and even necessary to maintain the efficiency and competitiveness of the sector.
Farm typology
Farm typology
The USDA’s Economic Research Service has developed a farm typology, or farm classification, that divides the 2.1 million U.S. farms into 8 mutually exclusive and relatively homogeneous groups:#limited resource farms#retirement farms...
analysis by the USDA Economic Research Service
Economic Research Service
The Economic Research Service is the main source of economic information and research from the U.S. Department of Agriculture. Located in Washington D.C., the mission of ERS is to inform and enhance public and private decision-making on economic and policy issues related to agriculture, food,...
divides the small family farm category into five groups:
- limited-resource farms;
- retirement farms;
- residential/lifestyle farms;
- farming occupation/lower-sales,
- farming occupation/high-sales.
European Union
Debate concerning the role of small farms within the European UnionEuropean Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
is ongoing. As of 2009, it had not established a formal definition of the term that could be used in its Common Agricultural Policy
Common Agricultural Policy
The Common Agricultural Policy is a system of European Union agricultural subsidies and programmes. It represents 48% of the EU's budget, €49.8 billion in 2006 ....
, although public perception of their possible benefits has led to requests for further studies from the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
.