The recent USDA annual report on "Farm and Land in Farms" showed slight drops in farm numbers and farm acreage in 2021 compared with 2020.
The 17-page report said the total number of farms in the U.S. for 2021 is estimated at 2,012,050, down 6,950 farms from 2020. Interestingly, the number of farms actually increased in all sales classes except $1,000-$9,999, $100,000-$249,999, and $1 million or more. In 2021, 51% of all farms had less than $10,000 in sales and 81.5% of all farms had less than $100,000 in sales. And, 7.4% of all farms had sales of $500,000 or more.
Total land in farms, at 895.3 million acres, decreased 1.3 million acres from 2020. The biggest change for 2021 is that producers in the sales class of $1,000-$9,999 operated 640,000 fewer acres than in 2020. In 2021, 30.1% of all farmland was operated by farms with less than $100,000 in sales, while 40.9% of all farmland was operated by farms with sales of $500,000 or more.
The average farm size for 2021 is 445 acres, up from 444 acres the previous year. Average farm size increased in the $1 million or more sales class and decreased or remained unchanged in all other sales classes.
EDITOR’S TAKE:
These trends reported by USDA are not surprising, they are part of a long-term trend. Farm numbers have been decreasing since the 1930’s, while the size of farms really increased starting in the 1950’s and 1960’s and have continued ever since. One surprising aspect of this report is the large decrease in acreage farmed by those with $1,000 to 9,999 in sales. That same sales category experienced a decline in the number of farms as well. In other words, the changes are slowing and farmers are becoming more efficient with the land they have.
All this said, let us re-emphasize – farmers/ranchers own, operate and purchase a lot of trucks. The average is roughly three trucks per farm, some significantly more. Research shows that approximately one million of those trucks are replaced every year. This is a significant number. Plus, the remainder of those trucks still need parts and service. Whether you offer that service at your dealership or by mobile unit, it is a way to build that relationship with the farmers/ranchers in your area. Think of ways you can increase the amount of contact you have with them, as they are great prospective customers!
