Less Farmland, Fewer Farms, More Money: 'This is a Long-term Trend'

There are fewer U.S. farms and less farmland, according to USDA data. Yet, more Michigan farms (1,700) experienced at least $1 million in sales from 2021 to 2022.

That’s because farmers are doing more with less, said Loren Koeman, lead economist for Michigan Farm Bureau.

“Total agricultural output is projected to be up in 2022, so combined with slightly less acres, means higher output per acre,” Koeman said. “Higher output per acre means that some farms that were just below the four-price category breakpoint now move up to the higher category, so you see sales of at least $1 million.”

The Michigan trend is also a nationwide one: The number of U.S. farms (just north of 2 million) is down 9,350 farms from 2021, yet the number of farms increased in all sales classes except the $1,000-$9,999 and

“Farms are continuing to get larger over time in terms of acres,” Koeman said. “This is a long-term trend. Put it this way: It takes fewer acres to make it to the $1 million-plus category.”

Source: michiganfarmnews.com