Michigan Loses Over 1,300 Farms Amid Shifting Agricultural Economy

Rural communities face significant changes as farms grow larger or diversify to survive

Published on Mar. 4, 2026

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The U.S. Department of Agriculture reported that Michigan lost about 1,300 farms between 2023 and 2024, as the agricultural economy has worsened. Experts say farmers are presented with two options for survival - either grow their acreage to cover costs or diversify into higher-value crops. This shift means fewer but larger farms, which could damage rural economies as farmers rely less on local businesses. The declining population in rural areas is also creating additional economic strain.

Why it matters

The loss of farms and changing agricultural landscape is impacting the culture and economy of rural Michigan communities. As farms grow larger and rely less on local resources, it threatens the traditional rural identity and puts pressure on small businesses that have historically served the farming community.

The details

Farmers like Matt Munsell in Fowlerville are facing tough choices, needing to either expand their operations or diversify into higher-value crops to survive the worsening agricultural economy. This shift means fewer but larger farms in a given region, which may not continue to do business with local suppliers, equipment dealers, and other community-based enterprises. The state's Department of Agriculture and Rural Development director, Tim Boring, notes that farms are increasingly sourcing products globally rather than regionally, further isolating rural communities.

  • Between 2023 and 2024, Michigan lost about 1,300 farms according to the U.S. Department of Agriculture.

The players

Matt Munsell

A farmer growing corn, wheat and pumpkins in Fowlerville, Michigan.

Bill Knudson

A professor at Michigan State University in the Department of Agricultural, Food and Resource Economics.

Theresa Sisung

The commodity and regulatory relations manager at Michigan Farm Bureau.

Tim Boring

The director of the state Department of Agriculture and Rural Development.

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What they’re saying

“Either you have to keep adding acres to get more land to cover equipment costs and all that, or you have to diversify into higher-value crops.”

— Matt Munsell, Farmer (ourmidland.com)

“This will mean that there will be fewer farms in a given region, but those farms that remain will be larger, and those larger farms may or may not service or do business in a rural community.”

— Bill Knudson, Professor (ourmidland.com)

“Farmers typically do business locally, whether they work with local equipment dealers or parts suppliers or the local hardware store, or even doing business at local restaurants. If those local relationships end, many of those businesses may close.”

— Theresa Sisung, Commodity and Regulatory Relations Manager (ourmidland.com)

“Unless people start coming in, then you lose that auto parts store, you lose the hardware store. We lose that rural identity of community.”

— Matt Munsell, Farmer (ourmidland.com)

“We're to the point now that you look at where we are with rural communities, and a lot of times there's not a lot of optimism. Incomes are declining, people are choosing to move away and pursue careers and lives in other places.”

— Tim Boring, Director (ourmidland.com)

What’s next

Experts say the shifting agricultural economy will require rural communities to diversify their economies and find new ways to attract residents and businesses to offset the decline in traditional farming.

The takeaway

The loss of over 1,300 farms in Michigan highlights the significant challenges facing rural communities as the agricultural economy evolves. Farmers are forced to make tough choices, which could further isolate these communities from their traditional economic and cultural ties to the land.