The Latest Numbers on The Latest Numbers on Alabama AgricultureAlabama Agriculture

November 8, 20043rd Butler/Cunningham Conference

Farm NumbersFarm Numbers

0

50

100

150

200

250

1950 1960 1970 1980 1990 2000 2001 2002 2003

000 Farms

Alabama Land in FarmsAlabama Land in Farms

0

5

10

15

20

25

50 54 59 64 69 74 78 82 87 92 97

Mill

ion

Acr

es

Farm land Farm land accounted for 64 % accounted for 64 % of the state’s total of the state’s total 32.5 million acre 32.5 million acre land area in 1950land area in 1950

In 1997, farm land In 1997, farm land accounted for 27%accounted for 27%

Source: Census of Agriculture

Trend Continues at Increasing RateTrend Continues at Increasing Rate

8.5

8.6

8.7

8.8

8.9

9

9.1

9.2

9.3

9.4

9.5

9.6

1997 2002

Mil

Acr

es

42

43

44

45

46

47

48

49

50

51

000

Far

ms

Land in Farms Farms

From 1997 to 2002, From 1997 to 2002, farm numbers declined farm numbers declined 10%10%– Most were <$10K SalesMost were <$10K Sales– 80% were <180 acres80% were <180 acres

Land in Farms Land in Farms declined 6%declined 6%

Source: 2002 Census of Ag

Harvested CroplandHarvested Cropland

0

1

2

3

4

5

6

50 54 59 64 69 74 78 82 87 92 97

Mill

ion

Acr

es

In 1997, cropland accounted for 6 In 1997, cropland accounted for 6 % of total farm land% of total farm land

Cropland accounted for 18 % of Cropland accounted for 18 % of total land area in 1950total land area in 1950

Source: Census of Agriculture

Harvested CroplandHarvested Cropland

1.90

1.95

2.00

2.05

2.10

2.15

2.20

Mil

Acr

es

1997 20028% Decrease in 5 years

Source: 2002 Census of Ag

Farm Counts by Farm Counts by SizeSize

Acres per Farm - 2002Acres per Farm - 2002

2% 1%

17%

38%

31%

6%5%

1-9 10-49 50-179180-499 500-999 1000-19992000+

75% of farms are 180 75% of farms are 180 acres or lessacres or less

500 acre plus farms 500 acre plus farms make up 8% of totalmake up 8% of total

2,000 acre plus farms 2,000 acre plus farms total 523, or 1% total 523, or 1%

Farm Counts by Farm Counts by Value of SalesValue of Sales

Percent of Farms and Value of SalesPercent of Farms and Value of Sales

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

$500,000 or more

$250,000 to $499,000

$100,000 to 249,000

$50,000 to $99,000

$10,000 to $49,000

Less than $10,000

Farms

Value of Sales

Source: 2002 Census of Ag

10 % of Alabama farms produce 90 % of the market value 10 % of Alabama farms produce 90 % of the market value of products soldof products sold

1.4 % of farms sell $1,000,000 or more of ag products and 1.4 % of farms sell $1,000,000 or more of ag products and account for nearly 40 % of all salesaccount for nearly 40 % of all sales

Nearly three-fourths of all farms sell less than $10,000 of Nearly three-fourths of all farms sell less than $10,000 of ag products (less than 3% of all sales)ag products (less than 3% of all sales)

Farm StructureFarm Structure

95.1

0.2 0.54.2

Individual/Family

Partnership

Non-FamilyCorporation

Cooperative

Net Returns per Net Returns per FarmFarm

Net Gains & LossesNet Gains & Losses

0

5000

10000

15000

20000

25000

30000

Gains Losses

Far

ms

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Do

llar

s

Number of Farms Dollars per Farm

More farms with losses More farms with losses than gains in 2002than gains in 2002

Farms w/gains Farms w/gains averaged $21,000 on averaged $21,000 on the plus sidethe plus side

Farms w/losses Farms w/losses averaged $10,000 lossaveraged $10,000 loss

Overall, farms Overall, farms averaged $7,100 gainaveraged $7,100 gain

Net Returns by Sales GroupNet Returns by Sales Group Farms with $10,000 or Farms with $10,000 or

more in sales had a more in sales had a positivepositive net return net return

Farms with less than Farms with less than $10,000 in sales had a $10,000 in sales had a negativenegative return return

Sales Category # of Farms Gain/LossSales Category # of Farms Gain/Loss

$ 1,000,000 +$ 1,000,000 + 667 667 $229,556 $229,556 GainGain 500,000 – 999,999500,000 – 999,999 1,403 1,403 73,999 73,999 GainGain 250,000 – 499,999250,000 – 499,999 1,355 1,355 52,195 52,195 GainGain 100,000 – 249,000100,000 – 249,000 1,299 1,299 27,993 27,993 GainGain 50,000 - 99,99950,000 - 99,999 1,142 1,142 12,131 12,131 GainGain 25,000 - 49,99925,000 - 49,999 1,825 1,825 6,061 6,061 GainGain 10,000 - 24,99910,000 - 24,999 5,527 5,527 2,235 2,235 GainGain

5,000 - 9,9995,000 - 9,999 6,274 6,274 1,450 1,450 LossLoss 2,500 - 4,9992,500 - 4,999 6,349 6,349 2,302 2,302 LossLoss 1,000 - 2,4991,000 - 2,499 6,368 6,368 2,728 2,728 LossLoss Less than 1,000Less than 1,000 13,185 13,185 2,812 2,812 LossLoss

Net Returns by Farm Net Returns by Farm Type or EnterpriseType or Enterprise

Farm EnterpriseFarm Enterprise

Beef Cattle51%

Hogs0%

Sheep/Goats2%

Poultry/Egg8%

Fruit/Veg/Nut5%

Row Crop22%

Dairy0%

Nursery2%

Other10%

Net Returns per FarmNet Returns per Farm

-$10,000

$10,000

$30,000

$50,000

$70,000

$90,000

$110,000

Beef Cattle Row Crop Poultry/Egg Fruit/Veg Sheep/Goats Nursery Hogs Dairy

Most nursery operations (71%) have less than Most nursery operations (71%) have less than $50,000 net return….very large nurseries have $50,000 net return….very large nurseries have major influence on averagemajor influence on average

Likewise, about half of dairies net less than Likewise, about half of dairies net less than $50,000 per farm – not many left$50,000 per farm – not many left

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

Dollars per Lb

ALABAMA COTTON PRICES

What do our What do our largest largest

farms look like?farms look like?

$1,000,000 Plus Gross Sales$1,000,000 Plus Gross Sales

648 Farms (1% of all farms)648 Farms (1% of all farms) 77% are poultry operations77% are poultry operations 7% are nursery/greenhouse operations7% are nursery/greenhouse operations 6% are row crop farms6% are row crop farms

FarmFarmDemographicsDemographics

Average Age of Principal OperatorAverage Age of Principal Operator

52.3

51.1

51.853.1

54.8 54.7

56.6

46

48

50

52

54

56

58

Ag

e

74 78 82 87 92 97 O2

Census Year

Age Groups - 2002Age Groups - 2002

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

<25

25-34

35-44

45-49

50-54

55-59

60-64

65-69

70+

# of operators

TenureTenure

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2 or Less 3-4 5-9 10 or More

Years on Farm

Operators

72%

18%

7%3%

Percent of Operator’s Total Percent of Operator’s Total Income from FarmingIncome from Farming

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Less than25%

25-49 50-74 75-99 100%

% of Total Income

# of Operators

74%

6%

Days Worked off the FarmDays Worked off the Farm

0

5,000

10,000

15,000

20,000

25,000

No Daysworkedoff thefarm

At LeastOne Dayworkedoff thefarm

1-49Days

50-99Days

100-199Days

200 +Days

55% of primary 55% of primary operators worked operators worked off the farmoff the farm

Of those working Of those working off the farm, 75% off the farm, 75% worked 200 days worked 200 days or more, or more, essentially full essentially full time jobtime job

# of operators

The larger the farm size, the fewer days worked off The larger the farm size, the fewer days worked off the farmthe farm

However, a However, a 260260 acre farm still has as many acre farm still has as many primary operators working off the farm as notprimary operators working off the farm as not

And, even the And, even the 2,0002,000 acre plus farms have 31% of acre plus farms have 31% of operators working off the farm, with 59% of those operators working off the farm, with 59% of those working 200 days or moreworking 200 days or more

Finally, the numbers tell a lot about Finally, the numbers tell a lot about Alabama farms……Alabama farms……

But,But,They don’t tell an equally important They don’t tell an equally important

story - conservation practices of story - conservation practices of farms and their contribution toward a farms and their contribution toward a

safe and clean rural environmentsafe and clean rural environment

www.usda.gov/nasswww.usda.gov/nass

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