Buzz
Gardening has long been a staple of American households, with millions of homes nationwide featuring their own plots. This trend saw a significant surge during the pandemic lockdowns, as more individuals turned to backyard, rooftop, or community gardens. With rising food costs, many are now considering transforming their unused outdoor spaces into sources of affordable produce.
If your gardening efforts have grown beyond a casual pastime into a large-scale operation, you might be questioning whether you’ve crossed the threshold from gardener to farmer. Does growing your own food make you a farmer? Is vast acreage required, or can a rooftop container setup suffice? Must farms include livestock and machinery like tractors?
The distinction isn’t straightforward—opinions vary widely on what separates a farm from a garden. However, in a capitalist society, the defining factor often comes down to economics.
Farm to table
The rise of urban farming has blurred the lines between what constitutes a “farm” and a “garden.” Many restaurants and hotels are now cultivating their own produce on-site or nearby, enabling them to source fresh ingredients directly. If gardens are seen as leisurely spaces for retirees or homemakers, and farms as vast, labor-intensive operations feeding the nation, where do these modern growing setups fit in?
The federal government considers such container gardens used by businesses as farms. The USDA doesn’t measure a farm by its size, crop type, or workforce. Instead, it classifies a farm based on income: “Any place generating $1,000 or more from agricultural sales annually qualifies as a farm.” Even in a poor year, consistent earnings of $1,000 or more make you a farmer. Similarly, the IRS labels your operation as a farm if you “cultivate, operate, or manage” it for profit, meaning you sell what you grow or raise. However, if farming isn’t your main income source, the IRS considers it a “hobby farm,” excluding it from legal farm status for tax purposes.
Food for sale
The unifying factor is producing food for sale. These definitions clarify that the size of the land—whether a backyard or rooftop—and the quantity of produce or livestock don’t matter. What counts is the revenue generated. Interestingly, profitability isn’t a requirement. As long as you sell goods “for profit” (an intention, not an outcome) and earn at least $1,000, the government recognizes your operation as a farm, even if it operates at a loss.
The key distinction lies in the purpose of your produce: If it’s mainly for personal consumption—whether to feed your family or as a leisurely pursuit—it’s considered a garden, regardless of its size. However, if you sell a substantial amount of your harvest for income, you’re operating a farm, no matter how small it may be.
