RFD NEWS Special Report: U.S. Farms Decline Again While Operations Continue Expanding

RFD NEWS Markets Specialist Tony St. James reviews the USDA’s Farms and Land in Farms 2025 Summary.

2026BrandGuidep45-AerialViewHouseInAutumnWoods_clay-banks-2flbLB0-2f0-unsplash_1920x1080.jpg

Getty Images

NASHVILLE, TENN. (RFD NEWS) — The structure of American agriculture continues to shift toward fewer but larger operations as consolidation continues across the countryside.

The U.S. Department of Agriculture (USDA) Farms and Land in Farms 2025 Summary (PDF Version) shows the United States had 1.865 million farms in 2025, down from just over 2.02 million in 2018. Meanwhile, land in farms slipped only modestly to 873.9 million acres. Because farmland changed little while farm numbers fell, average farm size climbed to a record 469 acres.

The trend reflects long-running economic pressure. Higher equipment costs, labor shortages, and thinner margins make it harder for smaller operations to remain viable without expansion. Many retiring operators are not replaced by new entrants, allowing neighboring farms to absorb acres.

The shift changes how production decisions ripple through rural communities — fewer operators now manage a larger share of output, concentrating risk and marketing power into fewer hands. The pattern suggests structural change rather than a temporary cycle, reinforcing expectations that farm consolidation will continue shaping rural economies and land markets in the years ahead.

Farm-Level Takeaway: Fewer operators now control more acres, raising entry barriers.
Tony St. James, RFD NEWS Markets Specialist

Mid-Size Farms Continue Disappearing From U.S. Agriculture

The biggest loss in American agriculture is occurring in the middle as commercial family farms steadily disappear.

USDA data show nearly 79 percent of farms generate under $100,000 in annual sales yet control only about one-quarter of farmland. At the same time, farms selling more than $1 million of products represent just over 6 percent of operations but manage about 36 percent of all agricultural land.

That leaves mid-size farms — historically the backbone of rural communities — squeezed between scale efficiency and limited capital access. These operations are often too large to rely on off-farm income but too small to capture the purchasing and marketing advantages of larger competitors.

As a result, many mid-tier producers either expand significantly or exit entirely. The shift affects local equipment dealers, lenders, and service providers that traditionally depended on a wide base of independent commercial farms.

The data reinforce economists’ concerns that the rural economy is losing its broad commercial producer base rather than that agriculture itself is shrinking.

Farm-Level Takeaway: Commercial family farms face the greatest financial pressure today.
Tony St. James, RFD NEWS Markets Specialist

Large Farms Control Growing Share Of U.S. Farmland

A small share of farms now controls an outsized portion of American agricultural land.

According to USDA farm structure data, operations with more than $1 million in annual sales account for about 6 percent of farms but cover roughly 36 percent of all farmland. By comparison, smaller operations dominate farm counts but manage far fewer acres.

Economies of scale drive much of the shift. Larger farms can spread equipment, technology, and input costs across more acres while maintaining tighter margins. That advantage allows expansion during downturns when smaller competitors struggle financially.

Greater concentration also affects marketing patterns. Grain merchandising, input purchasing, and contract negotiations increasingly involve fewer but larger producers, changing how agribusiness firms structure their services and risk-management offerings.

While productivity gains often follow scale, the concentration raises ongoing debate about market access and competition across rural regions.

Farm-Level Takeaway: Scale increasingly determines competitiveness in modern crop production.
Tony St. James, RFD NEWS Markets Specialist

Small Farms Persist But Operate Limited Agricultural Land

America still has many small farms, but they cover only a small share of farmland.

Nearly half of U.S. farms report less than $10,000 in annual sales, according to USDA data. Yet those operations account for only about 8 percent of farmland nationwide, highlighting a widening divide between farm counts and production control.

Many of these operations rely on off-farm income, retirement holdings, or part-time management rather than full commercial production. Their presence keeps farm numbers high even as working production concentrates into fewer hands.

The split creates two different agricultural economies — one driven by lifestyle and land ownership, and another by commercial scale production. This distinction helps explain why national farm counts can remain relatively stable while rural production capacity continues to consolidate.

Economists say the trend complicates policy debates because farm programs affect very different types of operations in very different ways.

Farm-Level Takeaway: Farm numbers don’t equal production — acreage concentration matters.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
Texas A&M researchers are working with the University of Florida on a potential treatment for the disease.
The order aims to speed up grazing permits and restore suspended allotments for ranchers.
Some smaller feedlots are already empty as operators struggle with limited cattle availability.
Higher fertilizer and financing costs are putting pressure on Brazilian producers.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Federal payments are keeping farm income elevated despite weaker earnings from agricultural markets.
The department has not released new details on how individual agencies or offices will be affected.
Delaying equipment purchases may offer little relief as repair and financing expenses continue rising.
Tight cattle supplies could leave some winter wheat fields harvested for grain rather than grazed.
The company is working to fill reporting gaps that leave many private hay transactions untracked.
The order aims to expand domestic fuel production, though its impact on diesel prices remains uncertain.
Financial pressure on elevators could affect grain movement and payment timing for producers.
USDA says policy changes could ease costs before new domestic fertilizer facilities come online.
NRCS is streamlining its process to get conservation funding to farms and ranches faster.
Rain Reshapes Plains as Delta Drought Deepens Further
More frequent precipitation could improve winter wheat grazing and pasture conditions for cattle producers.
USDA corrected September corn data, but the current October production and yield forecasts remain unchanged.