Pennsylvania farmer spends 12 years failing to break even, works as a nurse to feed her family: 'The economics don't make sense'

“Thank goodness I have a regular job, that I have income, that I have guaranteed money coming in,” she told NPR. “Otherwise I wouldn’t be able to feed my family.” She loves the work, she said, “but the economics don’t make sense.”

Small family farms make up about 86% of all U.S. farms, the USDA reports, and, it notes, “Households running them typically rely on off-farm sources for the majority of their household income.”

The income that keeps most farms running

The USDA’s 2024 figures show what this looks like at scale. At the median, U.S. farm households lost $1,830 on their farming operations that year, against median off-farm income of $86,900 and median total household income of $102,748.

The USDA classifies a small farm as a residence farm when the operator is retired or has a primary occupation other than farming. In 2024, just 35% of those farms had positive income from farming — a median farm income of −$2,748, against a median total household income of $120,848 once the outside money is counted. Among intermediate farms, where farming is the primary occupation, 42% had positive farm income. The picture changes when it comes to commercial farms, with $350,000 or more in gross cash farm income, where 84% ran positive.

The American Farm Bureau Federation (AFBF) puts the same finding another way: In 2023, just 23% of farm household income came from farming itself. The other 77% came from somewhere else, including a wage job, a pension or investment income.

Why the costs got worse this year

Larger operations, while doing better, are under pressure, too, due to the current geopolitical situation. In an April survey of farmers and ranchers by Farm Journal for Amato Advisors, 94% said the war with Iran is pushing up their fertilizer or energy costs, while 78% say machinery and input costs (fuel, chemicals, fertilizer, seed) are one of their top three problems.

Brian Smyser, a seventh-generation farmer in York, Pennsylvania, farms on a different scale. He owns 250 acres and rents another 750 or so. He sells produce and raises livestock, and he has made crop insurance claims in five of the last six years. He’s experiencing higher fertilizer and fuel prices, he says, and he wants one fix. “The biggest thing is try to get this war over,” he told NPR.

Verbos is trying to make things work on her end. She picked up a contract this year supplying local community fridges that feed people in need. Her son is learning to spin wool, so eventually they might sell something finished instead of raw — and keep more of what the middlemen take.

What to check if a business venture is losing money

If you’re running a small business that loses money — a farm, a market stall, a workshop — you should keep two things in mind. First, you should know what the loss is costing you.

Verbos’ loss of $8,000 to $10,000 is supplemented by a nursing salary. Write down your annual loss, and understand how you can work to fill in the gaps if need be.

Second, watch your taxes. If a business loses money, it can generally write those losses off against other income. You can’t deduct expenses for a hobby at all — but you’ll still owe tax on whatever income it brings in. When it comes to farming, the IRS presumes you’re doing it for profit if the farm made money in at least three of the last five tax years.