New USDA Data Shows Minnesota Farm Numbers Drop Amid National Downturn

(KNSI) — A new report from the U.S. Department of Agriculture shows a decline in the number of farms in Minnesota and a drop in total farmland acreage.

The USDA’s Farms and Land in Farms 2025 Summary says the state had 64,000 farms in 2025, down from 65,300 farms in 2024. Land in farms went from 25.4 million acres in 2024 to 25.3 million acres in 2025; however, the average farm size grew slightly from 389 acres to 395 acres.

The 2025 data was generated using a statistical modeling approach rather than the traditional June Agricultural Survey, which was not conducted this year. The National Agricultural Statistics Service worked from historic trends and the previous ten years of survey data. The model error for farm numbers was 0.5%, compared to a 1.8% variation in 2024 when actual survey data was collected. This marks a meaningful change in how the data was produced.

Minnesota ranks among the larger farm states by both count and total acreage. The largest farms, with over $1 million in sales, account for a substantial share of the state’s total farmland.

The U.S. as a whole lost 15,000 farms from 2024 to 2025, and total farmland declined 2.51 million acres to 873.95 million acres. The average farm size grew to 499 acres from 469 acres. Farm numbers declined in every sales class except the $1 million or more category, which actually grew.

The numbers follow a long-term trend, with data going back to 2018 showing farm numbers have declined every year. Land has also shown a steady drop, but average farm size has grown, reflecting consolidation.

Smaller operations are facing mounting pressures, including falling commodity prices, negative returns per acre, increasing expenses, consolidation, urbanization, and an aging farmer population. When owners retire with no one to take over, many farms are simply closing.

Trade and policy uncertainty have added pressure on top of all of that, with tariff disputes reducing export demand for major commodities like corn, soybeans, and wheat.

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