Few ‘Corporate’ Farms in U.S., Most are Sole-Proprietors

LAKELAND, FL – It’s been said that you cannot grow anymore land. Maybe that’s true, but according to AgAmerica Lending,the average farm size in 2019 was one acre larger than the same farm in 2018. USDA statistics show that increase in farm size comes at the expense of a decline in total number of operations.

The West is home to the three states with the largest average farm size: Wyoming, Montana, and Nevada. THis region, however, boasts the lowest average pastureland value and the second-lowest average cropland value in the nation. On the other hand, the Northeast houses the three states with the smallest average farm size: Rhode Island, Massachusetts, and Connecticut yet also has the highest average land prices.

According to the 2017 Ag Census, the number of primary farm operators in the U.S. totaled over 1.9 million. With more primary farm operators than any other region, the Midwest claims just over 36 percent of the nation’s primary operators. On the other hand, the Delta region has the lowest primary farm operators (5.3 percent).

In every region, sole proprietorships make up the highest percentage of farm organizations and partnerships are the second-most popular type of business. The Midwest has the greatest number of sole proprietors (614,652), and the Southeast has the second-highest number of sole proprietors (358,552), while the Delta has the lowest number (89,613).

Conversely, Family-held corporation’s are the third most-popular form of business and the Midwest holds more than any other region. USDA estimates that around 70 percent of farmland will be transferred to another owner in the next 20 years, making succession planning crucial to the survival of family farms.
(SOURCE: All Ag News)

Midwest: Illinois, Indiana, Iowa, Ohio, Missouri, Michigan, Minnesota, Wisconsin, North Dakota, South Dakota, Nebraska, and Kansas.
Delta: Arkansas, Louisiana, and Mississippi.
Northeast: Maine, Vermont, New York, Massachusetts, Connecticut, Rhode Island, New Hampshire, New Jersey, Pennsylvania, Delaware, and Maryland.
Southeast: Kentucky, North Carolina, Tennessee, Virginia, West Virginia, Alabama, Georgia, South Carolina, and Florida.
Southern Plains: Texas and Oklahoma.
West: California, Oregon, Washington, Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona, and New Mexico.