A Comprehensive Overview of the 2022 Census

Are There Any Surprises in the 2022 Ag Census Results (released Feb 13, 2024)??

The 2022 census data has been tabulated and the results show some continuing trends seen in the 2017 census and previous. Figures for 2022 as compared with 2017 show these numbers:

• Decline in the number of farm operations, with a loss of 141,733 farms or 6.9%.
  • The number of small and mid-sized farms declined between 2017 and 2022
  • Large (sales $1-5 million) and very large farms (sales of $5 million or more) increased in number and, although just 6% of farms, accounted for 75% of ag sales.
• Decline in the number of farm acres (loss of 20.1 million ag acres)
• Only a minimal decline in the number of producers, but their average age increased to 58.1 years and their average time on their present farm is 28.1 years.
• Farm production expenses were 23% higher in 2022 (fertilizer was up 34.8%; hired labor costs were up by 33%)
• A total of 43% of farms had positive net cash farm income in 2022.
• Nearly three-fourths of farmland was used by farms specializing in two commodity categories: oilseed and grain production (32%) and beef cattle production (40%).
• Family-owned and operated farms accounted for 95% of all U.S. farms and operated 84% of land in farms.
• The number of new and beginning (operating 10 or fewer years on any farm) farmers is up 11%, in 2022 numbering 1 million of the 3.4 million US producers. Young producers (under the age of 35) now make up 9% of all farmers.

I invite you to look at the USDA 2022 census (List of Reports and Publications | 2022 Census of Agriculture | USDA/NASS, particularly these two summary pages: Census22_HL_FarmEconomics_FINAL.pdf (usda.gov); Census22_HL_FarmProducers_FINAL.pdf (usda.gov)

So, what do these figures mean for US producers and consumers?

Agriculture Secretary Tom Vilsack said these numbers should be a "wake-up call" for policymakers. In USDA press release #0028.24, Vilsack warned: “Today’s Census of Agriculture Report underscores it’s imperative that we continue to deliver agriculture policies that create multiple streams of income and new, more competitive models for small- and mid-sized farms. A combination of trade wars, the pandemic and policies that furthered a ‘get big or get out’ mentality pushed more people out of farming in the five years since the last Census, than in any other Census period this century. America, and especially our rural communities, cannot afford this trajectory toward larger, but fewer, farms.”

Do not reach conclusions about the census data too quickly; some “apparent” truths are anything but, while other impactful deductions must be teased from the reams of data.

The Initial Look at the 2022 Census of Ag

Agriculture USA Radio Broadcast, 2/20/24, presented by Rob Bain, Ag Secretary Tom Vilsack and Bryan Combs, NASS

In an initial look at the 2022 ag census data, areas raising concerns for Tom Vilsack included:

• Ongoing decline in number of farms (142K farms were lost since 2017)
• Ongoing decline in amount of US farmland (20M acres lost since 2017)

Additional data trends of note as voiced by these men included:

• Ongoing increase in average age of farm producers, now 58.1 (an increase of only 6 months since 2017, which is a small rise compared with previous census results).
• Young farmers (35 years old and under) numbered 296,480, an increase of 3.9%.
• New and beginning farmers increased by 11% of all farmers since 2017 and their average age was 47.1 years.
• 30% of all ag producers were new and beginning farmers.
• 36% of all producers were females and 58% of all farms reported at least 1 female producer.

On the economic side:

• Total value of ag production was up by 40%, from $389B in 2017 to $543B in 2022. Crop sales accounted for 52% of that value, up 45%. Livestock production value was up by 35%
• Total farm production expenses of producers in 2022 was $424B, up 30% since 2017.
• 43% of farms had a positive net cash farm income.

Included in the survey for the first time as an individual crop was hemp. Information about hemp from the data collected will be released this fall.

This brief radio broadcast can be heard at, "The Initial Look at the 2022 Census of Agriculture | USDA."

Several of these trends are ones we at UnCommon Farms have been tracking and forecasting for many years. There are important conclusions about the ag industry and its future from ongoing trends. However, as noted in our previous blog, this data and more could be misconstrued if considered out of context. A few notes for your consideration:

• Note the generational shift as “kids” are taking over for their parents. But the new farmers’ average age is 47.1. These “kids” have probably been working on the farm alongside their parents, not in the ownership role.
• Female numbers may not be growing as much as you would think; females are now being carefully reported in the audit due to government funds for minority owners.
• And, finally, again we must note that the increase in ag production value is not because of additional bushels being grown but due to the great increases in price. The fact that 2022 commodity price is 142% that of the same commodity’s 2017 price could lead to wrong conclusions about increases in production and yield if price is not considered.

More 2022 Ag Census Data on Farm Producers

The number of US producers held pretty steady at 3.4 million between 2017 and 2022 with a loss of only .8% while the number of farms declined (-6.9%) and US farmland acreage declined by 20M acres to 880 million acres.

The average age of farmers continued to rise and the number of producers between 35-64 years of age declined 9%. The number of producers 64 and older increased 12%. The number of beginning farmers (10 or fewer years) also increased to over 1 million beginning producers in 2022.

Snapshot of US Producers, 2022

Note these considerations as you ponder this data:

• 3.4M producers on 1.9M farms; it seems more owners/producers are being counted now than previously, possibly due to government programs such as FSA.
• The middle-aged producers, 35-64 years old, are declining as they retire with their dads and G3 takes over the farm, skipping a generation in some cases.
• There are many part-time producers; for 58% of producers, farming is NOT their primary occupation.

Farm Economics 2022 Census Data: Value Production and Income

With 1.9 million farms and 880.1 million acres, overall value of ag production and income increased from 2017 to 2022. Value of ag products reached $543.1 billion (up from $388.5 billion in 2017) with five commodities accounting for $363 billion, which is 2/3 of the value. Those five commodities are cattle and calves ($89.4B), corn ($88.5B), poultry and eggs ($76.5B), soybeans ($55.4B) and milk ($52.8B).

What products accounted for that huge total? Crops 52% and livestock nearly all the rest. The total value of crops produced in 2022 was $281 billion, up 45% from 2017. Livestock value was $262 billion, up 35%. It’s been an interesting battle between the two:

With the total number of farms declining from 2.04 million to 1.90 million between 2017 and 2022, consider this data on numbers by value of production and % of farms by sales class compared with their % of sales:

Number of Farms (in thousands) by Value of Production: 2017 and 2022

Percentage of Farms by Sales Class and Percentage of Sales

Food for thought as you consider this data:

• Increases in value of production are due to increases in price, NOT increases in production/yield.
• Anything below $1M in sales must be economically considered part-time farming, which means only 6% of farms have the economic means to support the family by farm production alone.
• Those 6% of all farms produce 78% of ag sales.

Farm Income and Expenses

Farm income in 2022 was $576 billion; that figure includes not just sales but also government programs and earnings from farm-related activities.

• Farm production expenses totaled $424 billion.
• S. farms had net cash income of $152 billion.
• Average farm income was $79,790, up 85% from 2017.

U.S. Farm Income

U.S. Farm Production Expenses

And if you are interested in where YOUR state ranks in terms of value of production, here are the TOP 10 Ag Producing States ($ billion):

Keep in mind as you consider this data:

• Again, price accounted for the big increase in value of ag products sold.
• There is risk if government programs do not stay in place and product price declines but costs do not decline proportionately.
• 2023-2024 could be the worst farm net income year ever in farm history (due to production expenses)

Overall, the 2022 census data reveals continuing trends of farm consolidation, an aging farmer population, increasing reliance on off-farm income sources, and a farm economy heavily influenced by market prices and input costs. While production value increased, the number of farms declined across most categories except the largest operations.