Small farms are categorized as less than 2,000 acres; medium-size farms as 2,000 to 5,000 acres; and large farms as more than 5,000 acres.
Source: McKinsey US Farmer Insights 2022–23 (n = 222)
¹
Larger farms are currently taking more actions to mitigate volatility than small farms.
Changes in farm management driven by volatility of inputs and grain pricing,
% of respondents (n = 222)
Q: How does the volatility in grain pricing and inputs change how you manage your farm? Select all that apply.
By farm size¹
Small
Medium
Large
Growers, especially larger farms, are changing purchasing and selling patterns
Buy inputs earlier
Sell forward more crops
Look for lower prices more aggressively
Engage in crop trading or other financial hedging
Switch crops
Invest in technology to better inform my spending decisions
Large farms are much more likely to reach for financial hedging
