Farm Typology

Fresh from ERS at USDA-

Farm typology

The Economic Research Service (ERS) has developed a farm classification to divide U.S. farms into eight mutually exclusive and more homogeneous groups. The farm typology focuses on "family farms," or farms organized as proprietorships, partnerships, and family corporations that are not operated by a hired manager. To be complete, however, it also includes nonfamily farms. A collapsed farm typology combines the eight groups into three categories.


Small Family Farms (sales less than $250,000)

Limited-resource farms. Any small farm with: (1) gross sales less than $100,000, (2) total farm assets less than $150,000, and (3) total operator household income less than $20,000. Limited-resource farmers may report farming, a nonfarm occupation, or retirement as their major occupation.

Retirement farms. Small farms whose operators report they are retired (excludes limited-resource farms operated by retired farmers).

Residential/lifestyle farms. Small farms whose operators report they had a major occupation other than farming (excludes limited-resource farms with operators reporting a nonfarm major occupation).

Farming occupation/lower-sales. Small farms with sales less than $100,000 whose operators report farming as their major occupation (excludes limited-resource farms whose operators report farming as their major occupation).

Farming occupation/high-sales. Small farms with sales between $100,000 and $249,999 whose operators report farming as their major occupation.

Other Farms
Large family farms. Farms with sales between $250,000 and $499,999.

Very large family farms. Farms with sales of $500,000 or more.

Nonfamily farms. Farms organized as nonfamily corporations or cooperatives, as well as farms operated by hired managers.

For further details on the collapsed farm typology, see Food and Agricultural Policy—Taking Stock for the New Century (Appendix 1).

Collapsed Farm Typology
The collapsed farm typology combines the eight farm typology groups into three categories:
Rural residence farms. Includes limited-resource, retirement, and residential lifestyle farms.

Intermediate farms. Includes farming occupation/lower-sales and farming occupation/higher-sales farms.

Commercial farms. Includes large, very large, and nonfamily farms.