Percentages of Farms in the United States
According to the agricultural research carried out in the US, it is evident that 61.3% of farms are considered small. Therefore, it implies that majority of agribusinesses carried on these farms are in small scale. On the other hand, the large farms account for 31%, while medium-sized farms account for 7.7%. In fact, majority of the land owned individually in US is mainly small. Therefore, most of the policies formulated are guided by this fact. Most of the government support in this industry is well purposed to serve the small farmers on their small farms. The support has helped the agricultural industry in the US, a situation that has uplifted small farms as opposed to large farms contrary to what is happening in other countries. (Looker & Tevis, 1998).
There are many small farms than large farms in American because most agricultural products are imported at low costs, a situation that has seriously discouraged large-scale commercial farming. Looker and Tevis (1998) also noted that many businesses prefer buying agricultural inputs rather than making them. Thus, small commercial farming has been much more popular in the United States than large commercial farming. The government has also shown more support for small commercial farmers than they have for large commercial farmers, as depicted by the figures shown above.
Contributions of Small Farms to Total Agricultural Output
The small farms are very influential in the agricultural industry in the US. According to Ginn (2015), for a farm to be considered small, their total cash farm income (TCFI) should be less than $250,000. Out of these small firms, only 40% can make more than $10,000 in TCFI. Amazingly, a shift towards large-scale farming has been slow because small farms are easier to manage and more profitable. As a result, small commercial farms have been established and have continued to grow in numbers. The government has also been showing steadfast support to small commercial farms owing to their level of success in the US.
The national agricultural output has also benefited a lot from commercial farms. They make less than $250,000. However, their produce is consistent and has been increasing over the years compared to large commercial farms where produce is rather erratic. Therefore, small commercial farms in the US are steadfast contributors to the national produce in agriculture (Branson, 2000).
Trends in American Agriculture
Although there have been a slight increase in large commercial farms, small commercial farms have been increasing over the years. Their profitability and simplicity in management has attracted many people as compared to large commercial farms. As well, many people are willing to accept losses incurred through a small commercial farm rather than by a large commercial farm. On the other hand, large commercial farms are trying to increase their popularity due to the increase in insurance covers they are enjoying, which offer effective means of hedging the risks involved. Essentially, the future is bright for both ventures, small and large commercial farms (Ginn, 2015).
According to Branson (2000), many American farmers are embracing farming seeking profits that can sustain their farms and families. Hence, this mentality has seriously reduced the spirit of agricultural entrepreneurship. However, the agricultural industry has developed largely and has continued to grow over the years making agriculture a stable source of income for many Americans.
References
Branson, K. (2000). Competition Rises in the Countryside. Tele.Com, 5(23), 28.
Ginn, J. (2015). GOING GLOBAL. Capitol Ideas, 58 (3), 12
Looker, D., & Tevis, C. (1998). Not so small or insignificant. Successful Farming, 96 (5), 18.
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