Farm Numbers Slip 0.6% in U.S.

WASHINGTON - Jan 31/05 - SNS -- The USDA says there was a modest decline in the number of farms operating in the United States in 2004, saying the number slipped 0.6% to 2.11 million farms working 936.6 million acres of land, down 0.2% from 2003.

The average farm size was 443 acres in 2004, an increase of 2 acres from the previous year. The decline in the number of farms and land in farms reflects a continuing consolidation in farming operations and transfers of agricultural land to competing uses.

Farm numbers declined in the 2 smallest economic sales classes and rose in the 3 largest economic sales classes. Part of the reduction in the small economic sales classes was due to normal attrition, mostly retirements. In addition, some operations transferred to larger economic sales classes by enterprise expansion. However, the majority of the changes in the economic sales classes were due to rising incomes. Many operations near the top of their economic sales class in 2003, moved into the next larger economic sales class in 2004.

As a result, the USDA said the largest percentage change from 2003 occurred in the smallest and largest economic sales classes. Farm numbers declined 1.6%, to 1.18 million farms, in the $1,000-$9,999 economic sales class. Meanwhile, farm numbers increased 4.7%, to 76,740 farms, in the $500,000 or more economic sales class. The number of farms with at least $10,000 in sales rose 0.6% from 2003 and the number of farms with at least $100,000 in sales rose 2.0%.

Land in farms also shifted from lower economic sales classes to higher economic sales classes. In the $1,000-$9,999 economic sales class, land in farms dropped 3.1%, to 120.8 million acres. Land operated by farms in the largest economic sales class, $500,000 or more in sales, increased 3.1%, to 203.8 million acres.

The average farm size decreased in each economic sales class even though the National average increased. The largest operations in each economic sales class for 2003 became the smallest operations in the next higher economic sales class for 2004. The combination of losing the larger operations and gaining smaller operations drove the average farm size down in each economic sales class.

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