CDFA held a joint meeting with the Small-Scale Producer and BIPOC Producer Advisory Committees on Tuesday to discuss developing a statewide definition of small farms. The effort seeks to establish criteria that better reflect California’s agricultural diversity, production costs, and farm business structures, rather than relying exclusively on federal classifications.

Under the USDA’s current framework, small family farms are generally defined as operations generating less than $350,000 in annual gross cash farm income. Committee members argued that this threshold does not adequately account for California’s higher labor costs, specialty crop production, regulatory requirements, and diverse marketing arrangements. The proposed framework would establish multiple farm-size tiers and consider factors such as ownership, agricultural revenue, and business structure, including leased operations and cooperatives.

Discussions focused on how a new definition could influence eligibility for state grants, disaster assistance, technical assistance, and agricultural procurement programs. Participants also raised concerns about using gross revenue rather than profitability, potentially excluding smaller operations with substantial production expenses. Others emphasized the importance of ensuring that beginning farmers and producers experiencing financial hardship are not inadvertently excluded. These considerations could have implications for agricultural programs involving groundwater management, irrigation efficiency, and other state assistance.

CDFA Farm Equity Advisor Thea Rittenhouse indicated that the proposal remains preliminary. The committees plan to continue discussions in December and partner with the University of California in 2027 to conduct additional economic research and support public engagement. Public outreach is anticipated during spring and early summer 2027, with the goal of developing a final definition later that year.

Source: Norwood Associates, LLC