A new report from the USDA Economic Research Service highlights the characteristics of beginning farmer and rancher (BFR) operations. It also identifies factors linked to long-term business survival.
The analysis draws on data from the 2012, 2017, and 2022 Census of Agriculture. It compares farms led entirely by beginning farmers with those that include more experienced producers. It also examines operations with no beginning farmers.
Smaller scale, different structure
Farms operated entirely by beginning farmers differ in several key ways from established operations.
These farms tend to be smaller. They are also more likely to rent land rather than own it. In addition, they typically hold fewer assets and carry less debt. As a result, they face lower interest costs. However, they are less likely to receive government payments.
Beginning farmers also tend to market products differently. Many sell through local or differentiated channels. These include organic production, value-added products, and agritourism.
Survival rates lag slightly behind
The report shows that farms operated only by beginning farmers have slightly lower survival rates. This is especially true when compared to similar-sized farms that include experienced producers.
Over the 10-year period from 2012 to 2022, survival rates were 2 to 3 percentage points lower. The gap varied depending on farm size.
Still, the findings show that certain strategies can improve long-term success.
Factors linked to stronger survival
Several factors are linked to higher survival rates among beginning farmers.
Participation in differentiated markets plays an important role. This includes local food systems, organic production, and agritourism. These approaches can help improve income stability.
The use of crop insurance also supports stronger business outcomes. In addition, farms that use government programs more actively tend to perform better. Renting land, rather than purchasing it, also links to improved survival.
Role in the future of agriculture
Beginning farmers and ranchers play an important role in the future of agriculture. They are defined as producers with 10 years or less of experience.
In 2022, more than one million beginning farmers operated in the United States. Together, they managed 196 million acres and generated $122 billion in agricultural sales.
However, these producers often face structural challenges. Many have lower net worth than established farmers. This can limit access to financing. Their smaller scale can also reduce efficiency compared to larger operations.
Targeted support programs
Several USDA programs aim to support beginning farmers and ranchers.
The Farm Service Agency offers targeted loan programs. The Risk Management Agency provides benefits for those who purchase crop insurance. The Natural Resources Conservation Service supports conservation practices through the Environmental Quality Incentives Program.
In addition, the National Institute for Food and Agriculture funds training and education through the Beginning Farmer and Rancher Development Program.
The report notes that better data can improve these programs. A clearer understanding of survival factors may help shape future policy and support new entrants to agriculture.
