US Agriculture, Forestry and Fishing Sector
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1.9 million farms and establishments involved in agricultural support, forestry, fishing, and hunting make up the sector. Establishments in this sector are focused on propagating and harvesting plants and animals for food, materials, and sport. While the vast majority of operations are small or family-owned businesses, corporate enterprises are entering the sector at a growing rate.
Food Safety and Traceability
Intentional and unintentional contamination of the US food supply is a growing concern.
Changes in Government Support
The agricultural and fishing subsectors benefit from government subsidies that increase income and reduce risk and costs.
Industry size & Structure
The agriculture, forestry, fishing, and hunting sector comprises 23,300 establishments and 1.9 million farms that together employ over 1 million workers and generate about $616.8 billion in annual revenue.
- The sector represents 1.4% of the nation's Gross Domestic Product (GDP) and employs 0.7% of the country's workers.
- The sector is highly fragmented, dominated by independent farms and owner-operated businesses.
- In addition to employer establishments, the agriculture, forestry, fishing, and hunting sector (aside from farms) has 255,956 owner-operated establishments with no employees. Subsectors with the highest numbers of nonemployer establishments are crop support services (26%); fishing (24%); and animal support services (23%). The owners of nonemployer firms typically perform the work and may outsource support functions like marketing and accounting.
- Overall employment in farming, fishing, and forestry occupations is projected to decline over the next decade. From 2022 to 2032, the agricultural workforce is expected to shed 16,000 jobs, with little or no change for fishing and hunting workers, according to the Bureau of Labor Statistics. Logging is projected to shed 2,400 jobs and forestry and conservation to decline by 1,000 positions.
Industry Forecast
US Agriculture, Forestry and Fishing Sector Industry Growth
Recent Developments
Jul 16, 2024 - Ag Survey Response Rates Falling
- Fewer farmers are responding to the USDA’s National Agricultural Statistics Service (NASS) surveys, AgWeb reports. Response rates to NASS crop surveys have declined from 80% to 85% in the early 1990s to below 60% in the late 2010s. For quarterly or annual NASS surveys, response rates are around 50% to 60%. Moreover, the response rate to USDA’s massive quinquennial Census of Agriculture was just 61% in 2022 compared to 71.5% in 2017. The impact of declining response rates includes reduced statistical precision of estimates, especially at the county level, and fewer counties for which estimates can be published. New telephone technologies and rising refusal rates from respondents, as well as concerns about data privacy and time constraints from farmers, are blamed for the decline. To encourage greater participation, the USDA is offering online response options, developing shorter questionnaires, and increasing follow-up.
- US fisheries are in hot water, according to NOAA Research’s study of marine heatwaves. Marine heatwaves occur when sea surface temperatures exceed 90% of typical regional temperatures, factoring in seasonal fluctuations, and can last from days to years, affecting not only surface waters but also the bottom of the ocean. Marine heatwaves stress marine life, leading to mass die-offs of fish, marine mammals, and seabirds, and coral bleaching. They can also trigger harmful algal blooms and intensified hurricanes. Cool- and cold-water fsh, like cod and salmon, are particularly vulnerable to heatwaves, according to the US Fish & Wildlife Service. Other species negatively impacted by warming waters include Dungeness and Alaskan snow crab, Pacific cod, and shrimp. Fish and seafood populations, their habitats, and the US fishing industry are feeling the impact, with experts warning that climate change could critically harm the $253 billion US fishing industry.
- According to two new epidemiological reports from the USDA's Animal and Plant Health Inspection Service, the spread of H5N1 avian flu in dairy cows on farms that have not taken in outside cattle is likely due to the movement of workers and shared equipment (and not wild birds – an early vector of the virus). Since late 2023, bird flu has infected cattle on more than 90 farms in a dozen states, and three people are known to have contracted the disease from cattle. The spread of the highly pathogenic virus among US dairy herds creates additional opportunities for human infections, according to federal officials who urged farms to take enhanced biosecurity measures to contain the virus, including wearing protective gear to reduce the risk of exposure. The US and Europe are developing vaccines that could help protect farm workers this year.
- 2023 saw a record low for the number of fish stocks subject to overfishing, according to the NOAA Fisheries Status of the Stocks report released in May. The annual report, an assessment of the 506 stocks and stock complexes managed by NOAA Fisheries, provides a look at the overall health of US fisheries. In 2023, US fisheries data revealed that 94% of stocks are not subject to overfishing, and 82% are not overfished. These numbers show slight improvements compared to the 2022 figures of 93% and 81%, respectively. Ongoing positive trends continued, with the number of stocks on the overfishing list decreasing by three stocks, reaching an all-time low of 21 stocks, and the number of stocks on the overfished list decreasing by one stock to 47. In 2023, summer flounder and Lane snapper were added to the overfished list, while Snohomish coho salmon was removed.
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