FA R M S, F I R M S, A N D H O U S E H O L D S
F I N D I N G S
Million-Dollar Farms Dominate Production of Some Commodities
In 2007, 37,300 farms—2 tions, place them in feedlots
percent of U.S. farming opera- until they reach slaughter
tions—accounted for half of weight, and ship them to
U.S. agricultural production, packers. Cow-calf enterprises
according to the Agricultural are typically found on small
Resource Management Survey. farms. Million-dollar beef
These farms were million dollar farms—especially those with
farms—that is, they had sales of sales of at least $5 million—
$1 million or more. Operating are much more likely to be
profit margins are high for mil- fed-cattle operations.
lion-dollar farms, giving them a Several technological
competitive advantage (see advances helped make live-
ISSUE 1
chart, “Operating profit margins stock production (dairy, hogs,
for farms increase with sales,” poultry, and fed cattle) more
on page 43). Jeff Vanuga, USDA/NRCS routine, making it easier
VO L U M E 7
Million-dollar farms Million-dollar farms accounted for large shares of dairy, hogs, for farms to operate on a
accounted for roughly 60 high-value crops, poultry, and beef in 2007 large scale. Milk and live-
to 70 percent of the stock production moved
Sales class:
production of five major $5,000,000 or more $250,000 to $499,999 from an open environ-
commodities: dairy prod- $1,000,000 to $4,999,999 Less than $250,000 ment to climate-con-
8 $500,000 to $999,999 (small farms)
ucts, hogs, high-value trolled buildings, making
crops, poultry, and beef, % of U.S. production Million-dollar farms production less depend-
A M B E R WAV E S
100
The largest million-dollar ent on the weather.