Key Takeaways

• The United States had 2,109,810 farms ten years ago (2012 precisely) compared to 2,012,050 farms in 2021. In 2011, the country had 2,131,240 farms.

• The 2012 US Census of Agriculture publication reported that 5.06% of US farms were corporate farms made up of family corporations (4.51%) and non-family corporations (0.55%). The rest of the farms are small family-owned. Also, a report released on January 22nd, 2021 revealed that 96% of the farms in the country are family-owned and operated. Additionally, these family-owned farms hold just 87% of farmlands and account for 82% (in value) of all agricultural products sold.
• The US produces an average of 14 billion bushels (356 million tonnes) of corn annually. Annually, the country also harvests an average of 4 billion bushels of soybeans, 1.8 billion bushels of wheat, 160 million bushels of barley, and 53 million bushels of oats.

• The ten (10) largest agricultural companies in the United States by revenue are Cargill, Tyson Foods, AGCO, The Mosaic Company, Perdue Farms, Pioneer Hi-Bred International (parent company, Corteva, Inc.), Seaboard Corporation, CF Industries Holding, Dole Food Company, and Fresh Del Monte Produce.
• The biggest family-owned farm owners in America by acreage are Bill Gates (242,000 acres), Offutt Family (190,000 acres), Stewart & Lynda Resnick (190,000 acres), Fanjul Family (160,000 acres), Russell Gordy (155,000 acres), Boswell Family (150,000 acres), Gaylon Lawrence Jr. (115,000 acres), Scully Family (106,725 acres), Larsen Farms (87,104 acres), and Simplot Family (82,500 acres).

Introduction

United States Farming Landscape: Insights

The Number of Operational Farms: Current Vs. 10 Years Ago

• According to an industry report by Statista corroborated by USDA NASS and Farm Progress, the United States had 2,109,810 farms ten years ago (2012 precisely) compared to 2,012,050 farms at the end of 2021.
• Between 2020 and 2019, the United States lost 4,400 licensed farms.
• The number of farms in the US has been on a steady decline since 2007, when the country had about 2.2 million farms.
• In its most recent survey, USDA reported that the were 2.02 million farms in the US in 2020 compared to 2.20 million in 2007.
• With "897 million acres of land in farms in 2020, the average farm size was 444 acres, only slightly greater than the 440 acres recorded in the early 1970s."
• The number of farms in the country for other selected years since 2000 is provided in the second image below.

 

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Individual/Family-Owned Vs. Conglomerate-Owned Farms

• The 2012 US Census of Agriculture publication reported that 5.06% of US farms were corporate farms made up of family corporations (4.51%) and non-family corporations (0.55%). The rest of the farms are small family-owned.
• Given that in 2012, there were 2,109,810 farms in the US, therefore, there were 11,604 non-family corporate farms (i.e., 0.55% of 2,109,810 farms) in the United States.
•  98% of the family farm corporations are small corporations, with 10 or fewer stockholders.
• Likewise, for the non-family farm corporations, 90% or 10,444 farms (i.e., 90% of are 11,604) are small corporations, having 10 or fewer stockholders.
• In the same year, family farms (including family corporate farms) constituted 96.7% of US farms and 89% of the US farmland area.

• According to America’s Diverse Family Farms: 2021 Edition, non-family farms constituted 2.4% of U.S. farms (47,275 farms).

• A report released on January 22nd, 2021 revealed that 96% of the farms in the country are family-owned and operated. Additionally, these family-owned farms hold just 87% of farmlands and account for 82% (in value) of all agricultural products sold.
• As of 2020, family farms constituted 98% of U.S. farms and accounted for 86% of farm production.
• A pictorial representation of the current distribution of farms in the US is contained in the second image below.

 

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Growth in Farming by Conglomerates

• A report by USDA’s Economic Research Service revealed that "family farms are the beating heart of U.S. agriculture with small farms (gross cash income below $350,000) constituting 90% of farms in the country and 22% of production."
• However, the share of small and family-owned farms has remained steady, while delivering less of the farm produce in the country.
• The "percentage of total farmland and amount of production small farms make up is down over the past 10 years, meaning big farms are getting bigger and are increasing production faster."
• The number of non-family farms in the US increased by 18% to 82,885 enterprises between 2012 and 2017.
• As of 2017, "non-family farms handled 116 million acres of U.S. farmland areas (47 million hectares), which represented an 8% increase as compared to 2012. Additionally, the sales of rose 13% to $70.4 billion between 2012 and 2017 reaching a share of 20% in the national agricultural sales."
• Christine Whitt, an agricultural economist for the USDA reported that in 2020, most U.S. farms were small family farms and operated nearly half of U.S. farmland while accounting for just 20% of farm production.
• Data from the US farm typology report showed that the number of family farms fell by 4% (almost 80,000 farms) since 2012.
• As per the fall, large and mid-size family farms were most hit, experiencing a decrease of 13% and 8%, respectively, while small family farms underwent a 3% decrease.
• The American Farmland Trust "estimated in 2018 that up to 370 million acres of farmland in the US – or nearly four times the total land area of California – could change ownership in the following 20 years."
• Furthermore, 10% (93 million acres) of all US land in farms was expected to change ownership between 2015 and 2019, of which, 23% was to be sold to a non-relative owner.
• The rise in production by large corporate farms is attributed to factors such as favorable government policies and the competitive advantage resulting from economies of scale.

 

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What is Being Farmed?

• America's most grown crops are "oats, barley, rice, sorghum, cotton, durum wheat and spring wheat, winter wheat, hay, soybean, and corn."
• In the United States, corn, wheat, soybeans, cotton, and hay make up 90% of harvested acreage.

• In 2020, corn and soybeans contributed more than 40% of the crop cash receipts.
• The US produces an average of 14 billion bushels (356 million tonnes) of corn annually.
• Annually, the country also harvests an average of 4 billion bushels of soybeans, 1.8 billion bushels of wheat, 160 million bushels of barley, and 53 million bushels of oats.

 

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The Biggest Agricultural Companies By Revenue

• The ten (10) largest agricultural companies in the United States by revenue are:
• Cargill: (34% of $134.4 billion) = $45.697 billion
• Tyson Foods: $4.9 billion 
• AGCO: $1.7874 billion 
• The Mosaic Company: $3.9293 billion 
• Perdue Farms: $7.1 billion 
• Pioneer Hi-Bred International (parent company, Corteva, Inc.): $6.782 billion 
• Seaboard Corporation: $2.031 billion 
• CF Industries Holding: $5.086 billion 
• Dole Food Company €1.296 billion = $1.533 billion (average exchange rate in 2021: 1.183 USD)
• Fresh Del Monte Produce: $2.5702 billion.

Market Share

• The market shares of the top agricultural companies in the United States by revenue are calculated as thus:

• Cargill: 8.95%
• Tyson Foods: 1%
• AGCO: 0.35%
• The Mosaic Company: 0.77%
• Perdue Farms: 1.4%
• Pioneer Hi-Bred International (parent company, Corteva, Inc.): 1.33%
• Seaboard Corporation: 0.4 %
• CF Industries Holding: 1%
• Dole Food Company: 0.3%
• Fresh Del Monte Produce: 0.5%.

Biggest Family-Owned Farm By Acreage

• The biggest family-owned farm owners in America by acreage are:

• Bill Gates: 242,000 acres 
• Offutt Family: 190,000 acres 
• Stewart & Lynda Resnick: 190,000 acres 
• Fanjul Family: 160,000 acres 
• Russell Gordy: 155,000 acres 
• Boswell Family: 150,000 acres 
• Gaylon Lawrence Jr.: 115,000 acres 
• Scully Family: 106,725 acres 
• Larsen Farms: 87,104 acres 
• Simplot Family: 82,500 acres.

Market Share

• The market shares of these farms are calculated as thus:

• Bill Gates: 0.027%
• Offutt Family: 0.0212%
• Stewart & Lynda Resnick: 0.0212%
• Fanjul Family: 0.0178%
• Russell Gordy: 0.0173%
• Boswell Family: 0.0167%
• Gaylon Lawrence Jr.: 0.0128%
• Scully Family: 0.0119%
• Larsen Farms: 0.00971%
• Simplot Family: 0.0092%.

Research Strategy

• Based on the report by USDA corroborated by Statista, the 2021 gross cash farm income (GCFI) was $510.59 billion.
• The market share of the top agricultural companies by revenue is calculated by expressing the revenue of each company as a percentage of the GCFI ($510.59 billion) = [(revenue of the top player ÷ GCFI) × 100].
• Therefore, the market shares of these companies are calculated as thus:
• Cargill: [($45.697 billion ÷ $510.59 billion) × 100] = 8.95%
• Tyson Foods: [($4.9 billion ÷ $510.59 billion) × 100] ≈ 1%
• AGCO: [($1.7874 billion ÷ $510.59 billion) × 100] = 0.35%
• The Mosaic Company: [($3.9293 billion ÷ $510.59 billion) × 100] = 0.77%
• Perdue Farms: [($7.1 billion ÷ $510.59 billion) × 100] = 1.4%
• Pioneer Hi-Bred International (parent company, Corteva, Inc.): [($6.782 billion ÷ $510.59 billion) × 100] = 1.33%
• Seaboard Corporation: [($2.031 billion ÷ $510.59 billion) × 100] =0.4 %
• CF Industries Holding: [($5.086 billion ÷ $510.59 billion) × 100] ≈ 1%
• Dole Food Company: [($1.533 billion ÷ $510.59 billion) × 100] = 0.3%
• Fresh Del Monte Produce: [($2.5702 billion ÷ $510.59 billion) × 100] = 0.5%

 

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• Based on a report published by USDA on February 04, 2022, the United States has 897 million acres of land in farms.

• The market share of the largest family-owned farm owners in America by acreage is calculated by expressing the total number of acreage of each farm owner as a percentage of the total acres of land in farms (897 million acres) = [(revenue of the top player ÷ the total acres of land in farms) × 100].
• Therefore, the market shares of these farms are calculated as thus:
• Bill Gates: [(242,000 acres ÷ 897 million acres) × 100] = 0.027%
• Offutt Family: [(190,000 acres ÷ 897 million acres) × 100] = 0.0212%
• Stewart & Lynda Resnick: [(190,000 acres ÷ 897 million acres) × 100] = 0.0212%
• Fanjul Family: [(160,000 acres ÷ 897 million acres) × 100] = 0.0178%
• Russell Gordy: [(155,000 acres ÷ 897 million acres) × 100] = 0.0173%
• Boswell Family: [(150,000 acres ÷ 897 million acres) × 100] = 0.0167%
• Gaylon Lawrence Jr.: [(115,000 acres ÷ 897 million acres) × 100] = 0.0128%
• Scully Family: [(106,725 acres ÷ 897 million acres) × 100] = 0.0119%
• Larsen Farms: [(87,104 acres ÷ 897 million acres) × 100] = 0.00971%
• Simplot Family: [(82,500 acres ÷ 897 million acres) × 100] = 0.0092%.

 

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