Northern Colorado Food Cluster

Creating a healthy community through a resilient, local food system.



What Is US Farming Business – Essence, Turnover, Profit, Useful Resources

What Is US Farming Business - Essence, Turnover, Profit, Useful Resources

Farmers in the United States are considered any entrepreneurs who sell agricultural goods for the amount exceeding $ 1,000 annually. If the farm does not sell anything, or its annual turnover does not reach this amount, then this is considered a kitchen garden. All these organizations are recorded in the USDA as producers in the agribusiness and are reflected in the statistics. Because of this, it turns out that 90% of goods in US agriculture are produced by 10% of farmers.

Throughout the years, the size of farms has been increasing, but relatively, the number of farmers has been decreasing. This is due to the fact that large farms and companies are displacing small family enterprises from agribusiness and they are forced to sell their land. Most small farmers in the United States have an additional source of income. Most often, this is a full–time job, and farming is a hobby for them. But some of them, as stated by Lakeview Oregon, forced to seek extra cash, grants, bonuses to stay afloat if they are not willing to market your business. This extra cash will grand an opportunity to prolong the life of the farm.

Now there is a trand of aging the farming business. Organic producers (farmers) are considered an exception to the general trend of farmers’ aging and the enlargement of farms. There are still many small family businesses in this niche. One of the first organic farms in the USA, Star Route Farms, is located in California. Its founder Warren Webber told that he started the business in 1974 with a small kitchen garden near the village of Bolinas. Initially, he sold products through retailers, but in recent years he has been working with restaurants. “The store always benefits from a deal with me, not me,” the farmer admits.

Farming profits

According to the USDA forecast, this year the average net profit in the US farming business will be $102.200. For comparison, the average paycheck in the United States last year was $ 53.600. The record profit in the history of the American agrobusiness was achieved in 2014, when farmers earned an average of $121.600.

Farmers in Northern Colorado say that in financially successful years it was not uncommon to buy new combines, tractors and cars every two or three years. Recently, funds is no longer being spent with such ease. Nevertheless, about 40% of farms bought a new tractor last year, according to a survey by Hoard’s Dairyman magazine.

Dairy farms are considered leaders in profitability in American farming, receiving on average more than $ 100,000 annually in net profit. According to this indicator, they are second only to pig farmers. The record of profitability by milk producers was set in 2014 against the background of a sharp rise in milk prices in the United States. That year they received an average of $109.500. This is despite the fact that the average size of a dairy farm in the USA is only 40 heads and only 9% of farms have more than 100 cows.

How much does it cost to create a family farm in the USA?

An American corporation costs $7,500 a year just for its activities. An active American corporation incurs a number of related costs that you may or may not know about.

The fees are the following:

  • Registration: 500 US dollars, one time;
  • EIN number: 0-200 US dollars, at a time;
  • Accounting and filing of tax returns: from $1,000 to $5,000 per year;
  • Startup insurance: from $1,500 per year.

10 Useful resources for farmers in the USA / — US Department of Agriculture; / – a website with a lot of useful information about growing crops; / — here you can learn a lot about the principles of farm management; / — farming website for residents of the western US part, where you can get advice and assistance on agricultural issues; / — website of the national service for agrarian economy; / — latest research in the field of agriculture; / — website of the agricultural Sciences Council; — agricultural fund for teenagers who want to become farmers; / is an excellent resource for novice farmers, will help with planning, drawing up a business plan and getting started.


US farming is a profitable business, but you need to approach crop cultivation competently and choose industries in advance that are in high demand on the market.

The life of farmers in the United States is not as luxary as statistics show, partly confirms the outflow of population from agricultural areas and the already mentioned aging of land owners. Young people, seeing how hard it is for their parents, prefer to go to the cities and do other work there, and rent out the land they inherited.

Category: General

Tags: Colorado, Farmers, finance, USA