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Understanding U.S. Farm Exits

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  • Hoppe, Robert A.
  • Korb, Penelope J.

Abstract

The rate at which U.S. farms go out of business, or exit farming, is about 9 or 10 percent per year, comparable to exit rates for nonfarm small businesses in the United States. U.S. farms have not disappeared because the rate of entry into farming is nearly as high as the exit rate. The relatively stable farm count since the 1970s reflects exits and entries essentially in balance. The probability of exit is higher for recent entrants than for older, more established farms. Farms operated by Blacks are more likely to exit than those operated by Whites, but the gap between Black and White exit probabilities has declined substantially since the 1980s. Exit probabilities differ by specialization, with beef farms less likely to exit than cash grain or hog farms.

Suggested Citation

  • Hoppe, Robert A. & Korb, Penelope J., 2006. "Understanding U.S. Farm Exits," Economic Research Report 7212, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uersrr:7212
    DOI: 10.22004/ag.econ.7212
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    References listed on IDEAS

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    Cited by:

    1. Alessandro Corsi & Vito Frontuto & Silvia Novelli, 2021. "What Drives Farm Structural Change? An Analysis of Economic, Demographic and Succession Factors," Agriculture, MDPI, vol. 11(5), pages 1-24, May.
    2. Fertő, Imre & Bojnec, Štefan & Iwasaki, Ichiro & Shida, Yoshisada, 2024. "Why do corporate farms survive in Central and Eastern Europe?," Agricultural Systems, Elsevier, vol. 218(C).
    3. Judith Mollers & Jana Fritzsch, 2010. "Individual farm exit decisions in Croatian family farms," Post-Communist Economies, Taylor & Francis Journals, vol. 22(1), pages 119-128.
    4. Kitenge, Erick, 2022. "Determinants of entries into and exits from the US farming sector," The Quarterly Review of Economics and Finance, Elsevier, vol. 85(C), pages 379-385.
    5. Adjei, Eugene & Hartarska, Valentina M., 2022. "An Impact Analysis of the Transition Incentive Program on Beginning Farmers and Ranchers in Rural United States," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322506, Agricultural and Applied Economics Association.

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