U.S. Farm Loss Continues, Though Causes Differ by State

American farmers are growing larger crops on fewer farms. While that long-term trend is clear nationwide, the factors driving farm losses vary widely by state. And there are still a couple years until the U.S. Department of Agriculture releases its next Census of Agriculture. 

Danny Munch, an American Farm Bureau economist, said this shows a couple trending factors. “The long-term decline in farm numbers alongside a decline in farmland shows consolidation, productivity gains, mechanization, and specialization have reshaped agriculture,” he said.

RELATED: The latest USDA Land in Farms report shows that the United States lost an estimated 15,000 farms in 2025 with Texas losing more than any other state: 2,000. The report showed that the number of farms in all sales classes decreased except one: $1,000,000 or more.

Farm Loss: Percentage Versus Numerical

Farm loss at the state level has many influences. Munch pointed out two categories they watched in the most recent census: percentage and numerical declines.

From 2017 to 2022, farms in the U.S. dropped by 7%, according to the 2022 Census of Agriculture report. New Mexico saw the largest percentage decline of 16.2% followed by Arizona at 12.5%, and Wyoming at 11.7%.

“Though the presence of regional trends in farm operation losses appears limited,” Munch said, “Drought conditions that battered much of the West in 2021 and 2022 may be responsible.”

Munich authored this report in 2024 on farm losses. 

In total, the U.S. lost about 141,000 farms numerically between 2017 and 2022. About 12% of those losses were from Texas, which fell by about 18,000 farm operations. Oklahoma followed with 8,153 fewer farms, while Missouri lost 7,433.

Munch explained it is difficult to point out a single issue responsible for fewer farms. “States differ based on urban pressure, land values, water availability, farm size structure, commodity mix, and whether they are dominated by sectors where consolidation has been especially strong,” he said.

Longer Trends of Farm Losses

The U.S. has seen farm losses throughout the history of its Census of Agriculture. Since the 1950s the number of farm operations fell by roughly 66%. Additionally, total farmland dropped about 27%, representing an acreage loss equal to nearly twice the size of Texas.

Munch said there are many implications to the data. “Fewer operations are carrying more of the production burden. And surviving farms often need more capital, more scale and stronger risk management just to stay viable,” he explained.

While the trend showed fewer farms over the last century of data, Munch said the most dramatic change happened in the decades after World War II. That’s when mechanization and productivity gains reduced the amount of labor needed on the farm.

Munch said, “That period represented a major structural transformation in American agriculture, not simply a downturn. Farms became significantly more productive, allowing fewer operations to produce more food, fiber and fuel than ever before.”

By the 1980s farm crisis, Munch said efficiency and cost management increasingly determined which farms could remain competitive.

“Productivity gains and capital investment allowed farms to produce more output, but they also increased financial exposure when markets turned,” Munch said. “The crisis exposed how vulnerable farms can become when high debt, rising interest rates and collapsing asset values collide with tight commodity margins.”

‘Farm Loss is Rarely About One Bad Year’

The most recent Census of Agriculture showed clear evidence of farm loss; however, there were some outliers. Iowa and Alaska saw an increase of farm operations, 807 and 183 respectively.

“Farm loss is rarely about one bad year,” Munch said. “It is usually the result of long-term pressure from tight margins, rising costs, and the reality that most farmers sell into commodity markets shaped by global supply and demand.”

According to Munch, a takeaway is that lowering per-unit costs alone is not enough. Many operations need to buffer market volatility. Additionally, as global competitors expand production, market stability is not certain.

Munch said, “Staying competitive increasingly means responding to evolving consumer demands and finding ways to stand out in markets that reward both efficiency and value.”

Unfortunately, Munch notes farm households often need to use off-farm incomes to support themselves. In 2023, the Farm Bureau reported about 77% of farm household income came from outside the farm.

RELATED: This husband-and-wife farm team both have off-farm jobs to sustain their family. They explained to American Farmland Owner why they sustain this level of dedication.