Several farming families may own heavy equipment together.
A family farmer is a person who works on a farm that is owned and operated as a family business by members of a family, including people such as parents, siblings, children, cousins, and grandparents. Family farms are eligible for certain government benefits, and there may be advantages to filing taxes and other legal documents with this status. A family farmer can also belong to collectives and community organizations that promote family farming and defend its members.
Dairy farms are often family owned.
Family farming can be passed down from generation to generation, although a family can also acquire a farm and start running it as a business. The farm must be family owned and operated, although it is possible to hire full-time labor to help out on a large family farm or use seasonal labor during the harvest season and other important times of the year. Multiple generations may work on the property, and it is possible to see housing for multiple family members on the estate. The family farmer manages the daily operations and may live on site.
Family farms that have a niche market, such as organic farming, often need special certifications.
To qualify as a family farm, it must be run as a business, not a hobby, country estate, or country residence. This means that the family farm must generate enough income to cover operating expenses, including expenses for veterinarians, seeds, equipment, etc. If the farm is doing well, payments to family members may also be available, usually offered on a sliding scale depending on their position in the business. The family farmer may depend on these payments or may have a separate business to meet her own needs.
Family farming may focus on raising livestock.
Family farms can be run as sole proprietors, business partnerships between family members, or family corporations. If the company is not owned by the family or has a majority shareholder outside the family, it ceases to be a family estate and cannot be treated as such under the law. Farms that meet these criteria are eligible for government assistance, family farm incentive programs, and special labeling laws in some regions, where family farms may have their own badge to alert customers to the origin of their products.
Family farmers may be given preference when it comes to selling their crops in local markets.
Running a farm can be financially challenging. A family farmer may not have access to the corporate resources that very large farms use to support themselves and may rely on grants, loans, and other financial aid at various times of the year. Niche farms, like organic farming, have to pay for certifications so they can use special labeling, and that can be expensive. Benefits for family farming may include access to limited markets, community subsidies, membership in community organizations, and special treatment under the law for taxes and bankruptcy proceedings.