A recent USDA statistic making the rounds suggests that only 13% of U.S. farms purchase crop insurance. This figure is being cited by critics of crop insurance, particularly those interested in highlighting perceived weaknesses in coverage for specialty crops.

But this interpretation misses a critical point: the USDA’s definition of a “farm” is outdated and overly broad – so broad, in fact, that it includes hundreds of thousands of entities that are not commercially viable and may not grow any crops at all.

According to USDA’s Economic Research Service, a farm is defined as “any place from which $1,000 or more of agricultural products were produced and sold, or normally would have been sold, during the year.” 

This definition hasn’t changed at all since the 1970s to account for radical changes in agriculture, technology, or even inflation. And it’s not much different thanthe $500 sales threshold used by the USDA in 1870.

In fact, USDA’s current definition includes properties with no actual production – such as hobby farms, gardens, timber lots, and even old farms converted into rural residences.

USDA itself acknowledges that “more than 25% of farms have no sales in a typical year, and at least another 30% have positive sales of less than $10,000.” 

This means more than half of the operations categorized as “farms” under this definition have minimal or no market activity and may not grow crops at all – making it misleading to include these entities when evaluating crop insurance participation.

The more accurate measure comes from actual farmers. A recent survey conducted by Anthro Insights found that 91% of U.S. crop producers purchased crop insurance in 2024, and 90% have done so consistently over the past five years. These farmers grow everything from row crops to fruits, vegetables, and forage. The survey included 401 responses from operations representing nearly 750,000 acres and over 3 million head of livestock across the country.

The same survey found high satisfaction with the crop insurance program: 83% of farmers report a positive experience, and 85% are satisfied with the claims process. Notably, 87% say the program does not hinder their conservation practices – contradicting another common criticism.

 It’s easy to be “in the know” about agriculture news from coast to coast! Sign up for a FREE month of Agri-Pulse news. Simply click here.

Even though crop insurance currently covers more than 90% of the crop acres in the country, there is no doubt that crop insurance can and will continue evolving to capture the remaining acreage and better serve the full diversity of American agriculture.

That’s why, since the last farm bill, new products tailored to specialty crops have been developed, with more currently under consideration through the 508(h) program, which allows farmers themselves to propose new policies.

Thanks to efforts by crop insurers and the USDA to innovate and enhance coverage options for specialty crops, there’s been a 34% increase in available insurance programs since 2018. Today, there are more than 70 individual specialty crop types insured, and more than $25 billion worth of protection provided.

Future efforts to modernize and improve the program should be grounded in accurate data, not misleading interpretations based on an antiquated definition of what constitutes a farm.

J.C. Carroll owns Agriliance Insurance Group, which serves farmers across the Southeast.