PARKER, COLORADO (RFD NEWS) — Small family farms continued to define the face of U.S. agriculture in 2024, but their role in land use, production value, and financial risk looked very different beneath the surface. According to USDA’s America’s Farms and Ranches at a Glance: 2025 Edition, small family farms accounted for the vast majority of farm operations, yet produced a relatively small share of total agricultural output.
Small family farms made up 86 percent of all U.S. farms in 2024 and operated 40 percent of farmland, but generated just 17 percent of total production value. In contrast, large-scale family farms accounted for only 5 percent of farms but produced half of the nation’s total agricultural value and operated one-third of all farmland. These large operations dominated production in several major commodities, including dairy, beef, cotton, specialty crops, and grains.
Financial vulnerability remained widespread. More than 70 percent of all farms operated with profit margins below 10 percent, placing them in a high-risk category. Risk exposure was highest among low-sales family farms, while very large family farms showed greater financial resilience despite carrying higher absolute debt levels.
Government support and risk management played uneven roles across farm sizes. Small family farms received the largest share of total government payments, while crop insurance indemnities were concentrated among midsize and large operations. Off-farm income continued to underpin household finances for most farm families, particularly smaller operations.
An economist with the Farm Bureau says new data from U.S. court filings paints a stark picture of the farm economy.
“Chapter 12 bankruptcies increased for the second year in a row in 2025, reaching 315 filings,” said Samantha Ayoub, Farm Bureau economist. “That’s up 46 percent from 2024. That second increase in a row shows that the farm economy, as we’ve been talking about, is really struggling, and excessive debt loads are starting to hit family farms.”
Ayoub notes that farm bankruptcies are not a perfect indicator of the farm economy, since the data often lags behind real farm finances.
“When you have some good years, that capital might be able to get you through a few downturns. We know we’ve seen declining receipts for four years now, and we’re just starting to see that second year in a row of increases in bankruptcies. And then secondly, a majority of farms actually don’t qualify for Chapter 12 farm bankruptcies. In order to qualify, you have to make the majority of your family income from farming,” she explained.
Despite many farms being in tight financial situations, Ayoub cautions that only a small number of farms are even eligible for Chapter 12 bankruptcy. She says the mix of thin margins paired with weakening livestock receipts and markets adds to a difficult situation, compounded by increasing production costs.
Farm Safety Net: Timeline for USDA’s ARC and PLC Program Payments
As planting season approaches, farmers are monitoring tight profit margins and safety net programs amid rising production costs and stagnant market prices. Understanding how these factors impact returns is a key focus for many producers.
Farm CPA Paul Neiffer joined us on Thursday’s Market Day Report to provide financial insight for the upcoming season.
In his interview with RFD NEWS, Neiffer explains why the price a farmer receives for crops, such as corn, may differ from the market price, taking into account various costs and adjustments.
Neiffer also discusses 2026 ARC and PLC payments, which are scheduled for 2027, and how they compare to this year’s payments. Finally, he provides a timeline for signing up for these programs this year to help producers plan ahead.
