Sustainable Agriculture Literature Review - Boulder County

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The profitability of large-scale production is due in part to economies of scale: as the
size of the operation increases, the average cost of production per unit decreases. This
principle is reflected in the percentage of U.S. farms operating on a negative profit. In
both 1991 and 2007, almost 60 percent of small commercial farms were running on a
negative profit. The percent of large and very large farms that operated on a negative
profit dropped to 23 percent and 15 percent respectively by 2007. While the percentage
of non-commercial farms reporting negative profits jumped from 66 to 75 percent
between 1991 and 2007, profit is not typically a primary motive for running a noncommercial
farm, and thus not a significant concern. Rather, non-commercial operators
tend to be more interested in the rural lifestyle and rely heavily on off-farm income to
generate a living. 831
Advances in technology also lend to the profitability of large-scale production. In addition
to improvements in mechanical technology and equipment, advances have also been
made in disease control, breeding and genetics, and animal housing. Such advances
make large-scale operations more feasible than they otherwise would be by helping
increase production through reduced impacts from disease and natural events and
improved efficiency of production. 832
Small farms also have a higher percentage of operators 65 and older. In 2007, 32
percent of small farm operators were age 65 or older, compared to 27 percent on noncommercial
farms, 17 percent on large farms, and 15 percent on very large farms. In
2007, the average age of farmers in Boulder County was 59.4 years of age, higher than
both the State of Colorado and national average. 833 This increase, which is double the
national average, reflects a changing pattern of employment with principal operators
continuing to work well past standard retirement ages as well as a drop in interest from
younger farmers who are increasingly pursuing careers outside of agriculture. 834 More
information can be found in 9.2 Demographics
Despite the declining numbers of small commercial farms, in 2007, small farm
production accounted for 22 percent of total U.S. agricultural output, or $65 billion. In
Boulder County, small farms account for 28 percent of output, or nearly $9.8 million. 835
The percent contribution to total U.S. agricultural output of several commodities from
small commercial farms is shown in Figure 43. 836
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