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Updating the ERS Farm Typology

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  • Hoppe, Robert A.
  • MacDonald, James M.

Abstract

The USDA’s Economic Research Service (ERS) farm typology was originally developed to classify farms into relatively homogeneous groups based on their gross farm sales, the primary occupation of their operators, and whether the farms are family farms. Nearly 15 years have passed since ERS first released its farm typology; in this report, we update it to reflect commodity price inflation and the shift of production to larger farms. We also make a technical change, switching the measure of farm size from gross farm sales to gross cash farm income (GCFI), the total revenue received by a farm business in a given year. After the price adjustment, small farms are defined as those with GCFI less than $350,000, up from the original $250,000 cutoff. To adjust for the upward shift in production, two groups are added to the typology for farms with GCFI of $1 million or more, and a midsize group is added for farms with GCFI between $350,000 and $999,999.

Suggested Citation

  • Hoppe, Robert A. & MacDonald, James M., 2013. "Updating the ERS Farm Typology," Economic Information Bulletin 147120, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersib:147120
    DOI: 10.22004/ag.econ.147120
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    References listed on IDEAS

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    1. Hoppe, Robert A. & Korb, Penelope J. & Banker, David E., 2008. "Million-Dollar Farms in the New Century," Economic Information Bulletin 58623, United States Department of Agriculture, Economic Research Service.
    2. Hoppe, Robert A. & MacDonald, James M. & Korb, Penelope J., 2010. "Small Farms in the United States: Persistence Under Pressure," Economic Information Bulletin 58300, United States Department of Agriculture, Economic Research Service.
    3. Hoppe, Robert A. & Banker, David E., 2010. "Structure and Finances of U.S. Farms: Family Farm Report, 2010 Edition," Economic Information Bulletin 291950, United States Department of Agriculture, Economic Research Service.
    4. MacDonald, James M., 2008. "The Economic Organization of U.S. Broiler Production," Economic Information Bulletin 58627, United States Department of Agriculture, Economic Research Service.
    5. Brian C. Briggeman & Allan W. Gray & Mitchell J. Morehart & Timothy G. Baker & Christine A. Wilson, 2007. "A New U.S. Farm Household Typology: Implications for Agricultural Policy," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(4), pages 765-782.
    6. Hoppe, Robert A., 2001. "Farm Households Are Often Dual-Career," Rural America/ Rural Development Perspectives, United States Department of Agriculture, Economic Research Service, vol. 16(2), July.
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