The Distribution of Farm Program Payments in the U.S.

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1 The Distribution of Farm Program Payments in the U.S. Ron L. Durst Economic Research Service U.S. Dept. of Agriculture JOINT SEMINAR BETWEEN THE WORKING PARTY ON AGRICULTURAL POLICIES AND MARKETS (APM) AND THE NETWORK FOR FARM-LEVEL ANALYSIS 25 February 29 OECD Conference Centre, 2 rue André Pascal, 7516 Paris, France

2 Overview Data Sources What Payments? Which Farms? Distribution of Payments Recent Developments

3 Sources of Data Farm Service Agency Administrative Data Internal Revenue Service (IRS) Tax Data Census of Agriculture Agricultural Resource Management Survey (ARMS)

4 What Payments? Commodity Payments Conservation Payments Disaster & Emergency Assistance Payments State & Local Program Payments

5 What Farms? What is a Farm? A farm is any place from which $1, or more of agricultural products (crops and livestock) were sold or normally would have been sold during the year. Family Farm A family farm is defined as one in which the more than 5 percent of the ownership of the farm business is held by related individuals. Nearly all farms (97 percent in 26) are family farms. Nonfamily Farms

6 Distribution of farms, payments, and program crop production for farms receiving government payments by sales class, Distribution of farms Distribution of commodity payments Distribution of conservation payments Distribution of program crop production Less than $1, $1, to $49,999 $5, to $99,999 $1, to $249,999 $25, to $499,999 $5, to $999,999 $1,, or more Source: USDA, ERS, 27 Agricultural Resource Management Survey/Version 1 only

7 Government payments as a percent of gross cash income and average government payment amount for farms receiving government payments by sales class, 27 Payment as % gross cash income Average payment Dollars 24 75,61 8, , 6, , 12 35,418 4, ,259 3, 6 3 2,4 Less than $1, 4,724 $1, to $49,999 7,797 $5, to $99, ,962 $1, to $249,999 $25, to $499, $5, to $999, $1,, or more 2, 1, Source: USDA, ERS, 27 Agricultural Resource Management Survey/Version 1 only

8 Distribution of farms and government payments by farm typology, 27 7 Distribution of farms Distribution of government payments Rural Residence Intermediate Commercial Source: USDA, ERS, 27 Agricultural Resource Management Survey/Version 1 only

9 Distribution of farms and government payments by farm specialization, Distribution of farms Distribution of Payments Cash grain Wheat Corn Soybeans Rice Other field crops Cotton High valued crops Beef cattle Hogs Poultry Dairy General livestock Source: USDA, ERS, 27 Agricultural Resource Management Survey/Version 1 only

10 Distribution of farms and government payments by production region, Distribution of farms Distribution of government payments Northeast Lake States Corn belt Northern plains Appalachia Southeast Delta Southern plains Mountain Pacific Source: USDA, ERS, 27 Agricultural Resource Management Survey/Version 1 only

11 Distribution of farms and government payments by number of operated acres, Distribution of farms Distribution of government payments Less than 1 acres 1 to 249 acres 25 to 499 acres 5 to 999 acres 1, to 1,999 acres 2, acres or more Source: USDA, ERS, 27 Agricultural Resource Management Survey/Version 1 only

12 Distribution of farms and government payments by size of payment, 27 Distribution of farms Distribution of government payments Less than $25, $25, to $49,999 $5, to $74,999 $75, t $99,999 $1, to $149,999 $15, or more Source: USDA, ERS, 27 Agricultural Resource Management Survey/Version 1 only

13 Distribution of farms and government payments by operator household income, Distribution of farms Distribution of government payments No income or negative Less than $25, $25, to $49,999 $5, to $99,999 $1, to $149,999 $15, to $199,999 $2, or more Nonfamily Source: USDA, ERS, 27 Agricultural Resource Management Survey/Version 1 only

14 Recent Developments Farm Conservation & Energy Act of 28 Average Crop Revenue Election (ACRE) Participation Requirements Payment Limits Income Cap on Eligibility Farm Consolidation