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Number of U.S. farms continue to decline
Data from the USDA shows the number of farms in the U.S. is declining and a farm real estate specialist says he expects the trend to continue.
Jim Rothermich, vice president of Iowa Appraisal, says it’s getting more and more expensive to run an operation. “We’ve seen such a run up in land values that I think some of the reason is just the immense capital it takes to own a farm, rent a farm, and buy the equipment for a farm.”
According to USDA’s Census of Agriculture released in February, farms in the U.S. totaled more than 1.9 million in 2022, down from more than 2.1 million in 2012, a 10% decrease in a decade.
Rothermich tells Brownfield farmland can be difficult to purchase, even the smaller tracts. “Here in Iowa, 80 acres is typically worth over a million dollars.”
He says the higher land values have also led to some early retirements. “As we’re in this generational transfer of wealth, there’s maybe several owners to a farm. That estate is worth so much that the person that might be staying back to farm the ground might decide they will cash-in too and live their life risk-free.”
Rothermich says access to affordable farmland has become one of the biggest barriers for young and beginning producers.
INTERVIEW: Jim Rothermich with Iowa Appraisal
Tags: ag economy, ag land, farm economy, Farmland, farms, Iowa, Iowa Appraisal, number of farms, US farms, USDA
