USDA study finds socially disadvantaged farmers operate at a higher risk

A report by the U.S. Department of Agriculture found farms operated by socially disadvantaged producers are more likely to be at high risk than those owned by white producers.

About 19,000 operations were surveyed for the USDA’s America’s Farmers and Ranchers at a Glance: 2023 Edition. This year, the USDA included data on credit and socially disadvantaged producers, or people who have experienced racial or ethnic prejudice.

The report found 64-74% of farms operated by those in that group have profit margins of less than 10%, putting their operations at higher risk.

Ashley Murdie, a USDA spokesperson, said in an email that the department included data on farmers of color in the report to inform departmental programs of the research and better serve producers.

In the report, Black farms contrast the most in size, specialization and financial outcomes when compared to those owned by their white counterparts.

Black farm operators are more likely to operate cattle farms and have a lower median household income. They also received smaller government payments and have the lowest average loan amount of $154,593 compared to $492,675 among white producers, according to the report.

The study does not go into the reasons behind the findings, but researchers note the farm’s size and type of commodity produced could affect the amount of payments to socially disadvantaged producers.