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Tipsheet

Here's Why the US Is Losing Farms at an Alarming Rate

Here's Why the US Is Losing Farms at an Alarming Rate
AP Photo/Marco Ugarte

The United States lost about 15,000 farms last year as part of a disturbing trend that is reshaping the nation’s agricultural landscape.

The Agriculture Department’s latest Land in Farms report showed that the total number of farms in the U.S. fell to about 1.86 million in 2025, down from roughly 1.88 million in 2024. No state reported a net increase in farm operations.

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Since 2018, the U.S. has lost over 150,000 farms, representing an eight percent decline that has affected states like Texas and Minnesota.

Smaller operations represent most of the losses. Farms with only $1,000 to $9,999 in yearly sales saw the steepest decline. Only farms that make over $1 million in sales grew.

There are a plethora of factors contributing to this trend. Rising costs, weaker prices, and structural change in the farm economy have figured into the decline, according to RFD-TV. Farmers are spending more for equipment, fuel, and fertilizer. Meanwhile commodity prices have dropped, creating what several economists describe as a crop-sector recession.

Farm bankruptcies and forced sales have increased, along with land prices and interests. This is making it harder for younger and smaller operations to start new farms or to expand existing ones.

If this trend continues, it could mean that U.S. agriculture appears more productive on paper, but less diverse and more vulnerable to changes in the industry. As larger farms continue to grow and smaller ones vanish, production will be concentrated in fewer hands and regions. This will increase the impact of extreme weather, disease outbreaks, or government policy changes on the industry.

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It would also have a detrimental impact on rural communities that depend on small and mid-sized farms for jobs. In the end, the U.S. could end up with an agriculture industry that is efficient, but less resilient.

Much of this problem could be addressed by rolling back federal subsidies and mandates. The government already has far too much control over agriculture. Slashing unnecessary regulations that disproportionately weigh down smaller operations could go a long way toward evening the playing field.

Regulations tend to function as protectionist barriers that allow larger farms to flourish while effectively killing small farms. If this trend is to be reversed, it means doing away with government interference.

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