This Economic Information Bulletin estimates that about half of U.S. farms had sales of at least $1 million in 2002, up from one-fourth in 1982. By 2006, million-dollar farms, accounting for 2% of all U.S. farms, dominated U.S. production of high-value crops, milk, hogs, poultry, and beef. The shift to million-dollar farms is likely to continue because they tend to be more profitable than smaller farms, giving them a competitive advantage.

Small farms (those with annual sales less than $250,000) represent a large majority of U.S. farms (92%), but account for a relatively small share of total farm production (23%). The 35,100 million-dollar farms reported in 2006 — 2% of all U.S. farms—accounted for 48% of the sales of U.S. agricultural products.

Major Findings:

• The shift in production to million-dollar farms is likely to continue.
• Million-dollar farms do not have market power.
• Million-dollar farms receive a small share of government payments.
• Million-dollar farms have more operators than farms with lower sales.
• Most million-dollar farms are family operations.
• Million-dollar farms account for most contract production.
• Million-dollar farms also served as contractors.