About

American farmers, ranchers, and agricultural managers direct the activities of one of the world's largest and most productive agricultural sectors. They produce enough food and fiber to meet the needs of the United States and for export. Farmers and ranchers own and operate mainly family-owned farms. They also may lease land from a landowner and operate it as a working farm. Agricultural managers manage the day-to-day activities of one or more farms, ranches, nurseries, timber tracts, greenhouses, or other agricultural establishments for farmers, absentee landowners, or corporations. While their duties and responsibilities vary widely, all farmers, ranchers, and agricultural managers focus on the business aspects of running a farm. On small farms, they may oversee the entire operation; on larger farms, they may oversee a single activity, such as marketing.

Farm output and income are strongly influenced by the weather, disease, fluctuations in prices of domestic farm products, and Federal farm programs. In crop-production operations, farmers and managers usually determine the best time to plant seed, apply fertilizer and chemicals, and harvest and market the crops. Many carefully plan the combination of crops they grow, so that if the price of one crop drops, they will have sufficient income from another crop to make up the loss. Farmers, ranchers, and managers monitor the constantly changing prices for their products. They use different strategies to protect themselves from unpredictable changes in the markets for agricultural products. If they plan ahead, they may be able to store their crops or keep their livestock to take advantage of higher prices later in the year. Those who participate in the futures market enter contracts on future delivery of agricultural goods. These contracts can minimize the risk of sudden price changes by guaranteeing a certain price for farmers' and ranchers' agricultural goods when they are ready to sell.

While most farm output is sold to food-processing companies, some farmers—particularly operators of smaller farms—may choose to sell their goods directly to consumers through farmers' markets. Some use cooperatives to reduce their financial risk and to gain a larger share of the prices consumers pay. For example, in community-supported agriculture, cooperatives sell shares of a harvest to consumers prior to the planting season. This frees the farmer from having to bear all the financial risks and ensures a market for the produce of the coming season. Farmers, ranchers, and agricultural managers also negotiate with banks and other credit lenders to get the best financing deals for their equipment, livestock, and seed.