Current Issues Facing Small Farms in America — And the Real Solutions Farmers Need Now

Small farms are the backbone of America’s food system. They preserve rural culture, protect land, build local economies, and feed communities.But today, small producers face challenges that threaten their survival — challenges that large, industrial operations can navigate with ease, but that crush independent growers, new farmers, and minority producers.

Below is a breakdown of the biggest issues facing small farms in 2025 and beyond — followed by practical, realistic solutions that farmers can start applying today.

1. Rising Costs of Production

The Issue:Farm inputs — feed, fertilizer, fuel, fencing, seed, equipment — have increased 20–60% over the last four years.Small farms don’t have the buying power or scale to absorb these increases like corporate operations do.

The Solution:

• Adopt efficiency-focused production models: rotational grazing, mob grazing, silvopasture, microgreens, fodder systems.

• Join or create buying co-ops: shared purchasing lowers input costs dramatically.

• Tap USDA programs: EQIP can pay 50–90% of infrastructure improvements like fencing, water lines, silvopasture, irrigation.

• Start value-added processing: turning raw products into higher-margin goods (jams, pickles, cuts of meat, herbs, microgreens mixes).

2. Limited Access to Land and High Land Prices

The Issue:Land values keep increasing, making farm expansion or new farm ownership almost impossible without creative financing. Many minority farmers have the skills but not the capital or generational land.

The Solution:

• Owner financing & lease-to-own agreements (like you used): flexible and accessible for new farmers.

• USDA FSA Loans:

  • Direct Farm Ownership

  • Microloans

  • Down-Payment Assistance

• Land Link programs: match retiring farmers with new producers.

• Develop high-profit, low-acreage enterprises: microgreens, intensive vegetables, sheep/goats, floriculture.

3. Lack of Access to Capital & Grants

The Issue:Banks hesitate to lend to new farmers without credit history or collateral. Many farmers don’t know grants exist or how to qualify.

The Solution:

• Build a lender-ready business plan: With financial projections, cashflow strategy, and production plan.

• Use USDA-backed programs:

  • FSA Guaranteed Loans

  • Beginning Farmer Microloans

  • VAPG (Value Added Producer Grant)

  • LFPP/FMPP for direct-to-consumer sales

• Leverage community-based funding: CDFIs, local co-ops, crowdfunding, CSA presales.

• Get professional grant writing support: increases approval odds significantly.

4. Climate Pressure and Unpredictable Weather

The Issue:Drought, excess rainfall, heat waves, and extreme storms are hitting farms harder each year.Small farms lack the infrastructure to adapt quickly.

The Solution:

• Invest in climate-resilient practices:

  • Cover cropping

  • High tunnels

  • Windbreaks

  • Silvopasture

  • Drip irrigation

• Use NRCS programs: EQIP and CSP provide funding for nearly every resilience practice.

• Diversify production: multiple crops/animals reduce risk.

• Build water security: rainwater catchment, ponds, wells (where allowed).

5. Market Access & Price Pressure

The Issue:Small farmers struggle to compete with large commercial producers who control distribution channels and wholesale pricing.Many rely on farmers’ markets with inconsistent sales.

The Solution:

• Develop direct-to-consumer models:

  • CSA (subscription boxes)

  • Farm delivery routes

  • Online storefronts

  • Social media marketing (your specialty)

• Create partnerships with local restaurants and small grocers

• Sell niche, high-value products instead of commodity crops

• Brand the farm, not the product: people pay for story, authenticity, and trust.

6. Labor Shortages & Burnout

The Issue:Small farmers often run entire operations alone or with limited help. Labor is expensive and hard to find. Burnout is common.

The Solution:

• Shift toward enterprises that match your labor capacity (e.g., microgreens, sheep, cattle on rotational systems).

• Use low-labor systems:

  • Permanent fencing

  • Automatic waterers

  • Timed irrigation

  • No-till systems

• Offer internships or work-trade programs

• Implement digital tools: farm apps, bookkeeping software, automated marketing.

7. Policy Barriers & Inequity for Minority Producers

The Issue:Black farmers, Hispanic farmers, and other minority producers still face structural inequalities in lending, land access, technical support, and political representation.

The Solution:

• Connect directly with lawmakers (exactly what you’re doing right now).

• Use targeted programs:

  • 2501 Program

  • Heirs Property Relending Program

  • Socially Disadvantaged Farmer provisions in EQIP/FSA

• Build networks: minority farmer alliances, mentorship groups, and coalitions.

• Document everything: conversations with lenders, program decisions, denials, etc.

The Real Solution: Building Sustainable Farms That Can Survive the Future

Small farms don’t fail because farmers are lazy or unskilled.They fail because the system wasn’t built for them.

But with the right knowledge, the right financing strategy, and the right support, small producers can thrive — even in today’s environment.

That’s why services like Norma’s Basket exist:to guide farmers step-by-step through funding, business planning, and building operations that last.

Need Help Building or Funding Your Farm?

Whether you’re a beginner or scaling to the next level, I help farmers:

• Secure USDA loans

• Apply for grants

• Build production plans

• Develop business plans

• Create farm systems that actually work

📩 Book a consultation todayLet’s build your farm the right way.