Are We a Small Farm?

3.21.2023

How big is a typical, California walnut orchard? That depends on who you ask. Let's talk to the Agricultural Marketing Service of the USDA:

"A small walnut producer is one that grosses less than $3.25 million annually."  

Never mind that an operation with 800 acres of walnuts might also have a substantial acreage in grapes, row crops, rice, or any of California's myriad crops.

How does USDA arrive at that conclusion?

"To estimate the percentage of small walnut farms, using National Agricultural Statistics Service data, the first step was computing a 3-year average crop value, which was roughly $1.077 billion for the period 2018-19 to 2020-21. The average walnut-bearing acreage over that same 3-year period was 372,500 acres. Dividing crop value by bearing acreage shows a per-acre revenue estimate of $2,892. Using these numbers, it would take approximately 1,124 acres ($3,250,000 divided by $2,892) to yield roughly $3,250,000 in annual walnut sales. The 2017 Agricultural Census data show that 94 percent of walnut farms in 2017 were below 1,000 acres. Therefore, 94 percent or more of California walnut farms would be considered small businesses according to the current SBA definition of $3.25 million in gross annual receipts."

Why, you might ask, does the USDA make this evaluation? It's because they and the industry make rules regarding the marketing of walnuts to which we are bound by law. And occasionally there is a process to amend the rules. The USDA takes testimony from the industry for or against proposed changes, and the government needs to be sure it's a 'fair' process. This way, they conclude that they have received comments from both small and large walnut producers (yeah, some companies have 1,200 acres or more of walnuts).

So, at 27 acres of bearing trees, are we a 'small farm'?