Small farms have a big impact on agriculture pa.

UNIVERSITY PARK, Pennsylvania — Although they vastly outnumber large farms, small farms produce only a tiny fraction of Pennsylvania’s total agricultural output.

However, these small farms support billions of dollars in economic activity while helping to preserve farmland and adding to the diversity of agriculture in the state, according to researchers at Penn State’s College of Agricultural Sciences.

The researchers, affiliated with the college’s Center for Economic and Community Development, analyzed data from the United States Department of Agriculture and summarized their findings in two reports: “Not Inconsequential: The Economic Effect of Small Farms in Pennsylvania, 2017″ and ” Understanding the Quiet Majority: Small Farms in Pennsylvania, 2017.”

The reports are part of a series called “Understanding Pennsylvania Agriculture: 2017 Update” that explores various aspects of the USDA’s 2017 Census of Agriculture. The agricultural census is compiled every five years and the results of the 2017 census were published in 2019.

“Small farms are often overlooked or even dismissed when people talk about agriculture in Pennsylvania,” said Timothy Kelsey, co-director of the Center for Economic and Community Development. “Despite contributing relatively little to the state’s total agricultural production, small farms far outnumber large farms. Focusing narrowly on the value of their agricultural sales misses the important role they play in the Commonwealth.

Sales

The USDA defines small farms as those with annual agricultural product sales of less than $250,000, a category that applied to 88% of Pennsylvania farms in 2017. The share of these farms in total agricultural product sales in 2017 was around 19%.

However, 27,000 farms in the state, or about 51% of all farms, had sales below $10,000, collectively accounting for just 0.8% of total farm sales that year. By contrast, the 3,087 farms with more than $500,000 in annual sales accounted for only 5.8% of Pennsylvania farms, but claimed nearly two-thirds of all agricultural sales.

Kelsey pointed out that most small farms in Pennsylvania are losing money, largely because many are operated for lifestyle or hobby purposes or to supplement a family’s food supply and not to provide the bulk of household income.

Economic benefits

He explained that despite their relatively small production, small farms still make significant economic contributions through their purchases, spending about $1.5 billion in production costs and generating about $2.2 billion in dollars in direct, indirect and induced economic activity in 2017.

“Small farms purchase a significant amount of supplies and services from local agricultural businesses that larger farms also rely on, and thereby help those businesses stay in business,” he said. “Many small farms also purchase agricultural products, such as hay or other animal feed, from neighboring larger farms, which helps support these larger farms financially.”

Other benefits

However, the benefits of small farms go beyond economic considerations, said report co-author Emily Ciganik, an undergraduate research associate at the Center for Economic and Community Development.

“Small farms are important stewards of farmland in Pennsylvania, keeping land open and providing environmental benefits,” she said. “Furthermore, small farm owners can be important allies of large farms in advocating for pro-farm local policies, giving a stronger voice to the farming community.

Besides differences in sales volume, small and large farms differ in the types of agricultural products they produce, the reports say.

“Small farms are much more likely to have their primary business around the production of hay, beef cattle, aquaculture and other animals, which may include bees, horses, rabbits and others. species,” said Jessica, undergraduate research associate and co-author. Shi. “On the other hand, a much higher percentage of large farms are involved in dairy and poultry production as their primary focus.”

Demography

The reports also highlight the demographic characteristics that distinguish small and large farm operators, noted co-author Alyssa Gurklis, program and project coordinator for the Center for Economic and Community Development, who said small farms tended to age.

“The average age of operators of farms selling less than $1,000 of agricultural products per year was 59.1 in 2017, compared to an average age of just 49.6 for operators of farms selling more than $1 million. dollars,” Gurklis said. “About one-third of operators of farms selling between $5,000 and $9,999 were 65 years of age or older, while only 12.5% ​​of operators of farms selling between $250,000 and $499,999 were 65 years old. or more.

She added that operators of small farms were also more likely to have off-farm employment and to spend more days, on average, working off the farm than those overseeing larger operations.

These reports and others in the “Understanding Pennsylvania Agriculture, 2017 Update” series can be viewed on the Center for Economic and Community Development website.