A new report from the U.S. Department of Agriculture's National Agricultural Statistics Service (NASS) reveals that family-owned farms account for 95% of all farms in the United States. The 2022 Census of Agriculture Farm Typology report offers a detailed snapshot of how farm ownership, income levels, and production specialization shape the country's ag economy.

The USDA defines a family farm as any operation where the majority ownership lies with the producer and their relatives. This categorization is essential for assessing the economic contributions and demographic trends across America's 1.9 million farms.

"Classifying farms by typology gives us a clearer picture of who is farming in the U.S. and how these operations contribute to their communities and the broader economy," said NASS Administrator Joseph Parsons.

The data highlights a distinct economic split within family farms:

• Small family farms (gross cash farm income (GCFI) below $350,000) represent 85% of all U.S. farms, stewarding 39% of total farmland, but generating just 14% of all agricultural product sales.

• Large-scale family farms (GCFI of $1 million or more) make up less than 4% of farms, yet are responsible for 51% of the total value of production.

However, the report also brings attention to concerning trends in farm numbers. Since the last census in 2017, the total number of family farms has declined by 8%, with small family farms seeing a 10% drop in low-sales operations and 7% in moderate-sales operations. In contrast, large and very large farms grew by 40% and 65%, respectively, signaling continued consolidation in agricultural production.

Farm specialization also varies widely by scale:

• Among small farms, 31% specialize in cattle and 25% in hay and forage.

• Mid-size farms (those with moderate GCFI) lean heavily into grains and oilseeds, accounting for 55% of such operations.

• Large-scale farms show a more diversified production model, with a mix of crop and livestock operations.

In terms of market connection, small family farms lead the way in direct-to-consumer sales, accounting for 44% of all such transactions, compared to 18% for mid-size farms and 19% for large-scale farms.

The demographics of small family farm operators also provide insight into the sector's social fabric:

• More likely to be women and seniors aged 65 or older.

• A higher proportion report living on the farm, having military service, and working off-farm jobs.

• Many are new or beginning farmers, with less than 10 years of experience.

Policy Implications These findings come at a time when U.S. farm policy-particularly debates surrounding the 2025 Farm Bill-is under intense scrutiny. With input costs rising and climate challenges mounting, understanding the diversity and vulnerability of family farms is key to shaping future crop insurance, livestock support, and sustainability programs.

As large farms continue to dominate in production, small family operations remain crucial for rural economies, local food systems, and agricultural resilience. The USDA's typology report is a timely reminder of their enduring role-and the challenges they face.