Recent data released from the Alabama Farmers Federation sheds light on the challenges confronting Alabama farmers, highlighting a tough reality. High input costs, coupled with low profit margins and farm consolidation, have contributed to a decline in the state's overall farm numbers from 2017 to 2022, according to U.S. Census of Agriculture data unveiled on Feb. 13.

Alabama witnessed an 8% decrease in farms during this period, with the Yellowhammer State now tallying 37,362 farms as of 2022. This trend aligns with a broader national pattern, with the United States experiencing a 7% loss, leaving the country with 1.9 million farms within five years.

Despite the decline, Alabama's farming landscape still predominantly comprises family farms or partnerships, accounting for 95% of the total. Nationally, this figure stands at 91.31%.

In a contrasting trend, the average farm size in Alabama increased to 231 acres, marking a 20-acre rise. Smaller farms saw a reduction, while larger operations, particularly those with 2,000-plus acres, experienced a 22.58% surge.

The Census of Agriculture, conducted every five years, collected 2022 data in the wake of the COVID-19 pandemic and the aftermath of hurricanes Michael and Sally in 2018 and 2020, respectively. These disasters continue to reverberate across farm country, noted Mitt Walker of the Alabama Farmers Federation.

Walker emphasized the economic challenges facing farmers, stressing the necessity for a significant increase in reference prices in the upcoming farm bill to ensure profitability.

“At the end of the day, farmers are businessmen, and that means their farms have to be profitable,” said Walker, who manages governmental and agricultural programs for the state’s largest farm organization. “That’s getting more and more difficult with increased input costs, highlighting the need for a meaningful increase in reference prices in the next farm bill.”

While analyzing the Census data, Walker cautioned against viewing the market value of agricultural products in isolation.

“In Alabama, the data says market value of ag products is up 51.08% to $9.04 billion, but most of that is directly related to inflation and price surges for beef and poultry during the pandemic,” Walker said. “Prices have since dropped, so farmers’ pocketbooks aren’t reflecting that steep increase. The Census also notes high expenses for feed, fertilizer, labor and fuel. While some of that has dropped, expenses are still above pre-COVID levels.”

Noteworthy spikes in specific expenses include feed costs rising by 57.52%, fertilizer, lime, and soil conditioners increasing by 30.64%, hired farm labor climbing by 31.91%, and expenditures on gas, fuel, and oil surging by 31.78%.

The Census also underscores farmers' adoption of practices aimed at boosting yields and reducing losses, such as increased investments in irrigation, with Alabama experiencing a 20.1% gain to 170,537 acres under irrigation. Additionally, diversification into agritourism surged, with income reaching $9.84 million, a 45% increase.

Conservation practices also saw a rise compared to 2017, with farms embracing techniques like no-till farming, conservation or reduced tillage, and cover cropping.

Other notable statistics from the Census include a 3.04% decline in the number of Alabama farmers, with 34.7% being female, and the average age of Alabama farmers standing at 58.7.