Family Farm - United States Legal Definition

United States Legal Definition

As defined by USDA regulations to farm loan programs (e.g. those administered by the Farm Service Agency), a family farm is a farm that

  1. produces agricultural commodities for sale in such quantities so as to be recognized in the community as a farm and not a rural residence;
  2. produces enough income (including off-farm employment) to pay family and farm operating expenses, pay debts, and maintain the property;
  3. is managed by the operator;
  4. has a substantial amount of labor provided by the operator and the operator’s family; and
  5. may use seasonal labor during peak periods and a reasonable amount of full-time hired labor.

(For exact language, see 7 U.S.C. 1941.4,1943.4).

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