Consolidation and Fragmentation on Texas Working Lands
- IHS Sam Houston State Uni
- Apr 2
- 12 min read
Updated: Apr 7
How rising costs, land loss, and absentee ownership are reshaping the future of rural production.
By: Julia Chialastri
April 2026

Texas still runs on agriculture. The Texas Department of Agriculture records that we have approximately 231,00 farms working 125.5 million acres, meaning Texas leads the nation in the number of farmers and ranchers. [1] The weathered barns dotting two-lane roads are not just relics, they are the front doors of a $32.2 billion farm economy. [2] But, the foundation is shifting: from 1997 to 2022 nearly 3.7 million acres of Texas working lands were converted to non‑agricultural, with over 1.8 million acres lost in just the last five years.[3]
This trend in agriculture does not stop within the borders of Texas, across the United States agricultural consolidation is on the rise. For me, the lost acres of farming land in the US have names. My Grandpa Bud went farming, the way people said it then, after leaving school in eighth grade, my. His only break came at eighteen, when he enlisted as a Navy mechanic. Years of climbing on and off Massey Ferguson tractors eventually shifted his duties, especially after his third hip replacement, but he stayed in agriculture into his nineties. Bud planted many miles of trees for shelter belts to prevent wind erosion from the winds of Minnesota winters. My Grandpa Art learned the farming trade from his German-born father and crop conservation courses at Iowa State University during WWII. He helped pioneer soil conservation field terracing in his home county of Woodbury, IA and ran more than 2,000 head of hogs a year through his barns. Years of pushing hogs around led to knee replacements for him. When people commented on the odor of the hog sheds, he would simply retort, “the smell of money”.
Owner‑operator farms like my grandparents once adorned the Texas countryside. Today, they are thinning, pressured by metro grow, fragmentation, and rising land values that attract foreign and domestic capital into farm real estate. NRI report shows strong trends toward consolidation, loss of operations, and fragmentation. [4] Nationally, foreign interests hold nearly 46 million acres of U.S. agricultural land. [5] [6]
Consolidation and the Distance Problem
Consolidation means fewer, larger operations, and more decisions made from outside the community. In Texas alone, we lost approximately 17,700 farms (2017-2022), while average number of acres per farm rose, a classic consolidation dynamic. [7] [8] When decision‑making migrates off farm, evidence shows it can misalign incentives and bias choices toward short‑term gains. [9] Absentee landowners and on‑farm producers value conservation benefits differently, which affects what practices get funded or delayed. [10] Physical distance can influence decisions tied to long‑term soil productivity while also siphoning rental dollars away from local economies.[11]
Crop Consolidation
Consolidation can also be accompanied by crop specialization, which simplifies the plant landscape. Literature has suggested that landscape/monoculture specialization leads to higher pest pressure and insecticide use, which at broader scales. [12] [13] Conversely, more diverse land cover is associated with higher corn and wheat yields (≈10–20% gains); and a global reanalysis confirms that landscape simplicity depresses pollination/pest‑control services and yields.[14] Case‑level field studies echo this pattern: simplification increases pest outbreaks and spray frequency, cutting into margins and yields. Farm consolidation also tends to result in lower overall food supply, and higher volatility of food production.[15] [16]
Fragmentation and the Erosion of Stewardship
Metro growth accelerates land fragmentation. As working lands are divided and converted parcel by parcel, it becomes harder to rotate livestock, manage wildlife corridors, maintain erosion control, or steward water. Once converted, farmland rarely returns. National analysis warns that Texas contains some of the nation’s most threatened farmland, with fragmentation, reducing long-term production capacity and degrading environmental services that can’t be easily rebuilt. [17]
Tenure, Accountability, and the Meaning of Distance
The USDA finds that cash-rented acres often show similar conservation adoptions to owned land, with some gaps in share-rented situations.[18] [19] The real risk emerges when decisions are made from a distance without familiar with local soils, weathers, or neighbors. With foreign parties holding nearly 46 million acres of U.S. agricultural land, the USDA has tightened disclosure and enforcement.[20] Recognizing who owns and who controls land matters for transparency, stewardship and local accountability. [21]
Factors Driving Farm Loss and Consolidation
Market structure and margins: Production keeps shifting towards larger operations while small farms survive by specialization and marketing, creating a barbell that leaves the middle exposed.[22] At the same time, farmers are capturing less than 15 cents of each US food dollar as input, processing and the retail sector hold pricing power.[23] This dynamic creates a system where stress shows up fast and hard; Chapter 12 farm bankruptcies increased 55% in 2024.[24]
Capital and cost squeeze: Record high farmland values and cash rent raise the ante for beginners and for anyone trying to scale their operation. Simultaneously, interest rates and tighter credit lift operating costs higher, even after easing from 2022 peaks.[25] [26] Fertilizer and other inputs remain volatile, keeping margins thin.[27] Most traited seeds (genetically engineered/GE) are sold under patents and technology use agreements that prohibit saving seeds. Growers are forced to repurchase each season and pay trait/licensing fees, further amplifying costs. [28] [29] [30]
Labor Market: Wage and contracted labor account for 42% of production expenses for greenhouse and nursery operations, 40% of costs for fruit and nut tree production, accounting for about 12% across all farms.[31] With domestic hiring options limited, many operations lean on the H-2A, a program in flux with dynamics shifting with each administration.[32] [33]Automation and technology can blunt some pressures, but they are not drop-in replacements. Adoption is difficult, as complex systems that must be engineered crop by crop (sensing, end effectors, software, physical mechanism, etc.), must be integrated into existing workflows and made robust to survive field conditions.[34] [35] Promising machines are being made in this space, but capital costs, integration risk and skill deficits are significant hurdles that must be addressed before widespread adaptation.
Age and Health: The average US producer is 58.1, more than a third are sixty-five or older. When the same few people do the same high-exposure tasks for more years, cumulative risk inches up. New research from Barrow Neurological Institute (presented at the American Academy of Neurology) suggests that exposure can raise Parkinson risk on the order of 25–36%. [36] Advocacy groups now flag specific chemicals like the herbicide paraquat as consistent culprits. [37] None of this is simple or fully settled, but for aging farmers and rural workers, environmental exposure is one more weight on a scale already bent by hard labor.
Mental Health: The boom-and-bust economics of agriculture, weather extremes, and social isolation drive chronic stress and anxiety among producers. Recent reports show that agriculture is one of the industries with the highest suicide rates. [38] Weather cuts both ways for mental load, with rain in either extremes making or breaking a season. In 2025 weather and wildfire drove over $20.3 billion in US crops and rangeland losses. [39] Approximately $9.4 billion of which were uninsured or outside policy limits. [40] Sunshine and light rains do not bring relief either, as region-wide bumper harvests swell supply, depress underlying commodity prices, and squeeze margins. Empirically, extreme weather exposure if associated with stress and psychological distress among US farmers, emphasizing the connection between a factor beyond anyone’s realm of control, and sense of wellbeing. [41] [42]
Conclusion
The loss of owner-operators will not be solved by resisting consolidation, but by defining its limits. There is an inherent value in owner operators who care for their soil and water as part of their living legacy. But that legacy often comes at a high price. I see it in my own family, most intensely in my Grandpa Art’s Parkinson’s, potentially linked to the herbicides he was encouraged to use. At the same time, scale brings practical gains and stability to a fluctuating sector. Larger operations are often the first to adopt precision tools, and digital logistics, which can translate into lower unit cost, and steadier outputs.
Consolidation is not a death knell, but an industrial reality that requires public facing guardrails:
Maintain Ownership Transparency: Ensure complete and timely disclosure of land control under AFIDA, allowing communities and policymakers to fully see the landscape they inhabit.
Protect Vulnerable Working Lands: Conservation easements and infrastructure funding should focus on where fragmentation is most severe.
Incentivize Outcomes, Not Tenure: Reward farming actions that support soil and water quality, regardless of who is the landowner. ERS data shows that when incentives are aligned, rented acres can perform as well as owner operators.
Invest in Regional Infrastructure: Build the processing, storage, and aggregation hubs that keep buyers local, distribute bargaining power, and provide both small and large producers pathways to profitability
By shifting our focus from the size of the farm to the health of the system, we can endeavor to preserve the soul of the rural economies, without ignoring the efficiency and realities of the modern era.
Sources
American Farmland Trust. Farms Under Threat: Paving the Way for Development. Washington, DC: American Farmland Trust, 2022.
American Farm Bureau Federation. “2024 Farm Bankruptcies Highlight Worsening Farm Credit.” Market Intel. https://www.fb.org/market-intel/2024-farm-bankruptcies-highlight-worsening-farm-credit.
American Farm Bureau Federation. “2024 H-2A AEWRs On Their Way (Up).” Market Intel, December 4, 2023. https://www.fb.org/market-intel/2024-h-2a-aewrs-on-their-way-up.
American Farm Bureau Federation. “Hurricanes, Heat and Hardship: Counting 2024’s Crop Losses.” Market Intel, February 18, 2025. https://www.fb.org/market-intel/hurricanes-heat-and-hardship-counting-2024s-crop-losses.
Barrow Neurological Institute. “Pesticide Use Correlates with Parkinson’s Cases in Midwest, Western U.S.” March 6, 2024. https://www.barrowneuro.org/about/news-and-articles/as-seen-in/pesticide-use-correlates-with-parkinsons-cases-in-midwest-western-u-s/.
Bayer. Stewardship Guide. 2025. https://tug.bayer.com/wp-content/uploads/2025/07/Bayer_29115_US_Stewardship_Guide_UPDATED_Cover_Digital_Booklet_2025_Full.pdf.
Boudreaux, Thérèse. “46 Million Acres of U.S. Soil in Foreign Hands, Texas Leads in Chinese Ownership.” The Dallas Express, July 10, 2025. https://dallasexpress.com/national/46-million-acres-of-u-s-soil-in-foreign-hands-texas-leads-in-chinese-ownership.
Burnett, J. Wesley, Daniel Szmurlo, and Scott Callahan. Farmland Rental and Conservation Practice Adoption. EIB 270. Washington, DC: U.S. Department of Agriculture, Economic Research Service, March 26, 2024.
Dainese, Matteo, et al. “A Global Synthesis Reveals Biodiversity Mediated Benefits for Crop Production.” Science Advances 5, no. 10 (2019): eaax0121. https://doi.org/10.1126/sciadv.aax0121.
Dehlinger, Katie Micik. “Bumper Crops, Struggling Prices Weigh on Grain Farmers’ Incomes.” DTN/Progressive Farmer, December 30, 2024. https://www.dtnpf.com/agriculture/web/ag/news/business-inputs/article/2024/12/30/bumper-crops-struggling-prices-weig.
Hendrickson, Mary, and Harvey S. James. “The Ethics of Constrained Choice: How the Industrialization of Agriculture Impacts Farming and Farmer Behavior.” Journal of Agricultural and Environmental Ethics 18, no. 3 (May 2005): 269–291. https://doi.org/10.1007/s10806-005-0631-5.
John Glenn College of Public Affairs, The Ohio State University. “Impacts of Extreme Weather on Farmer Mental Health.” October 30, 2025. https://glenn.osu.edu/research-and-impact/impacts-extreme-weather-farmer-mental-health.
Lacy, Katherine, Kate Binzen Fuller, Sharon Raszap Skorbiansky, and Katherine Lim. America’s Farms and Ranches at a Glance: 2025 Edition. EIB 299. Washington, DC: U.S. Department of Agriculture, Economic Research Service, February 2026. https://www.ers.usda.gov/publications/pub-details?pubid=113786.
MacDonald, James M., and Robert A. Hoppe. Farm Structure and Consolidation in U.S. Agriculture. Washington, DC: U.S. Department of Agriculture, Economic Research Service, 2020.
Meehan, Timothy D., et al. “Agricultural Landscape Simplification and Insecticide Use in the Midwestern United States.” Proceedings of the National Academy of Sciences 108, no. 28 (2011): 11500–11505. https://doi.org/10.1073/pnas.1100751108.
National Federation of Independent Business v. Sebelius, 567 U.S. 519 (2012). https://www.law.cornell.edu/supremecourt/text/11-796.
Norrod, Paul E., Wayne T. Sanderson, Erin L. Abner, Jacqueline Seals, and Steve Browning. Farmer Suicides Among States Reporting Violent Deaths, 2003–2017. University of Kentucky: Family and Consumer Sciences Extension; Department of Biosystems and Agricultural Engineering; Department of Epidemiology and Environmental Health.
Seed World. “USDA Details Market Shares of Biggest Seed Industry Players.” October 4, 2023. https://www.seedworld.com/us/2023/10/04/usda-details-market-shares-of-biggest-seed-industry-players/.
Sharma, P., and P. Mittal. “Paraquat (Herbicide) as a Cause of Parkinson’s Disease.” Parkinsonism & Related Disorders (2023). https://doi.org/10.1016/j.parkreldis.2023.105932.
Smith, L. A., R. R. Lopez, A. A. Lund, and R. E. Anderson. Status Update and Trends of Texas Working Lands 1997–2022. College Station, TX: Texas A&M Natural Resources Institute, 2025. https://nri.tamu.edu/publications/research-reports/2025/25th-anniversary-report-status-update-and-trends-of-texas-working-lands-1997-2022/.
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Tong, Benjamin H., Tracy A. Boyer, and Larry D. Sanders. “Externalities, Profit, and Land Stewardship: Conflicting Motives for Soil and Water Conservation Adoption Among Absentee Landowners and On-Farm Producers.” Journal of Agricultural and Applied Economics 49, no. 4 (2017): 491–513. https://doi.org/10.1017/aae.2016.45.
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U.S. Department of Agriculture. “USDA Launches New Online Portal for Reporting Foreign Owned Agricultural Land Transactions.” News release, January 22, 2026. https://www.usda.gov/about-usda/news/press-releases/2026/01/22/usda-launches-new-online-portal-reporting-foreign-owned-agricultural-land-transactions.
U.S. Department of Agriculture, Economic Research Service. Absent Landlords in Agriculture—A Statistical Analysis (Summary). March 2021. https://ers.usda.gov/sites/default/files/_laserfiche/publications/100664/ERR-281_Summary.pdf.
U.S. Department of Agriculture, Economic Research Service. Farm Income & Finance Outlook (2023–2025).
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U.S. Department of Agriculture, Economic Research Service. Food Dollar Series. Accessed March 20, 2026. https://www.ers.usda.gov/data-products/food-dollar-series.
U.S. Department of Agriculture, Economic Research Service. Input Costs Index. https://www.ers.usda.gov.
U.S. Department of Agriculture, Farm Service Agency. Foreign Holdings of U.S. Agricultural Land through December 31, 2024. Washington, DC: USDA, January 2026. PDF. https://www.fsa.usda.gov/sites/default/files/2026-01/AFIDAYR2024ReportWithPageNumbers.pdf.
U.S. Department of Agriculture, National Agricultural Statistics Service (NASS). 2024 Texas Agricultural Statistics. Austin: Southern Plains Regional Field Office, October 2024. https://data.nass.usda.gov/Statistics_by_State/Texas/.
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U.S. Department of Agriculture, National Agricultural Statistics Service. Tenure, Ownership, and Transition of Agricultural Land (TOTAL), 2024 Highlights. March 2026. PDF. https://www.nass.usda.gov/Publications/Highlights/2026/TOTAL24.pdf.
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[1] Texas Department of Agriculture, “Texas Ag Stats,” accessed March 18, 2026, https://texasagriculture.gov/About/Texas-Ag-Stats.
[2] U.S. Department of Agriculture, National Agricultural Statistics Service (NASS), 2024 Texas Agricultural Statistics (Austin: Southern Plains Regional Field Office, October 2024), [10] https://data.nass.usda.gov/Statistics_by_State/Texas/
[3] L. A. Smith, R. R. Lopez, A. A. Lund, and R. E. Anderson, Status Update and Trends of Texas Working Lands 1997–2022 (College Station, TX: Texas A&M Natural Resources Institute, 2025), [3], https://nri.tamu.edu/publications/research-reports/2025/25th-anniversary-report-status-update-and-trends-of-texas-working-lands-1997-2022/.
[4] Smith et al., Status Update and Trends of Texas Working Lands 1997–2022, 3, https://nri.tamu.edu/publications/research-reports/2025/25th-anniversary-report-status-update-and-trends-of-texas-working-lands-1997-2022/.
[5] Thérèse Boudreaux, “46 million Acres of U.S. Soil in Foreign Hands, Texas Leads in Chinese Ownership,” The Dallas Express, July 10, 2025, https://dallasexpress.com/national/46-million-acres-of-u-s-soil-in-foreign-hands-texas-leads-in-chinese-ownership
[6] U.S. Department of Agriculture, Farm Service Agency, Foreign Holdings of U.S. Agricultural Land through December 31, 2024 (Washington, DC: USDA, January 2026), PDF, https://www.fsa.usda.gov/sites/default/files/2026-01/AFIDAYR2024ReportWithPageNumbers.pdf
[7] Texas A&M NRI, Status Update and Trends,[3].
[8] Texas Farm Bureau, “Ag Census Shows Texas Lost Over 17,700 Farms,” Texas Agriculture Daily, February 29, 2024, https://texasfarmbureau.org/ag-census-shows-texas-lost-over-17700-farms/.
[9] Benjamin H. Tong, Tracy A. Boyer, and Larry D. Sanders, “Externalities, Profit, and Land Stewardship: Conflicting Motives for Soil and Water Conservation Adoption Among Absentee Landowners and On‑Farm Producers,” Journal of Agricultural and Applied Economics 49, no. 4 (2017): 491–513, https://doi.org/10.1017/aae.2016.45.
[10] U.S. Department of Agriculture, National Agricultural Statistics Service. Tenure, Ownership, and Transition of Agricultural Land (TOTAL), 2024 Highlights (March 2026), PDF, https://www.nass.usda.gov/Publications/Highlights/2026/TOTAL24.pdf.
[11] U.S. Department of Agriculture, Economic Research Service, “Absent Landlords in Agriculture—A Statistical Analysis (Summary),” March 2021, https://ers.usda.gov/sites/default/files/_laserfiche/publications/100664/ERR-281_Summary.pdf.
[12] Dainese et al., “A Global Synthesis Reveals Biodiversity‑Mediated Benefits for Crop Production,” Science Advances 5, no. 10 (2019): eaax0121, https://doi.org/10.1126/sciadv.aax0121.
[13] Timothy D. Meehan et al., “Agricultural Landscape Simplification and Insecticide Use in the Midwestern United States,” Proceedings of the National Academy of Sciences 108, no. 28 (2011): 11500–11505, https://doi.org/10.1073/pnas.1100751108.
[14] Dainese et al., “A Global Synthesis Reveals Biodiversity‑Mediated Benefits for Crop Production,” Science Advances 5, no. 10 (2019): eaax0121, https://doi.org/10.1126/sciadv.aax0121.
[15] James M. MacDonald and Robert A. Hoppe, Farm Structure and Consolidation in U.S. Agriculture (Washington, DC: U.S. Department of Agriculture, Economic Research Service, 2020)
[16] Mary Hendrickson and Harvey S. James, “The Ethics of Constrained Choice: How the Industrialization of Agriculture Impacts Farming and Farmer Behavior,” Journal of Agricultural and Environmental Ethics 18, no. 3 (May 2005): 269–291, https://doi.org/10.1007/s10806-005-0631-5.
[17] American Farmland Trust, Farms Under Threat: Paving the Way for Development (Washington, DC: American Farmland Trust, 2022).
[18] United States Department of Agriculture, Economic Research Service, “Land Tenure and the Adoption of Conservation Practices: Do Renters Make Operating Decisions Like Owners?” Amber Waves, July 2024, https://www.ers.usda.gov/amber-waves/2024/july/land-tenure-and-the-adoption-of-conservation-practices-do-renters-make-operating-decisions-like-owners.
[19] J. Wesley Burnett, Daniel Szmurlo, and Scott Callahan, Farmland Rental and Conservation Practice Adoption, EIB‑270 (Washington, DC: U.S. Department of Agriculture, Economic Research Service, March 26, 2024).
[20] U.S. Department of Agriculture. “USDA Launches New Online Portal for Reporting Foreign‑Owned Agricultural Land Transactions.” News release, January 22, 2026. https://www.usda.gov/about-usda/news/press-releases/2026/01/22/usda-launches-new-online-portal-reporting-foreign-owned-agricultural-land-transactions
[21] U.S. Department of Agriculture, Farm Service Agency. Foreign Holdings of U.S. Agricultural Land Through December 31, 2024 (Washington, DC: USDA, January 2026), PDF, https://www.fsa.usda.gov/sites/default/files/2026-01/AFIDAYR2024ReportWithPageNumbers.pdf
[22] Katherine Lacy, Kate Binzen Fuller, Sharon Raszap Skorbiansky, and Katherine Lim, America’s Farms and Ranches at a Glance: 2025 Edition, EIB‑299 (Washington, DC: U.S. Department of Agriculture, Economic Research Service, February 2026), https://www.ers.usda.gov/publications/pub-details?pubid=113786.
[23] U.S. Department of Agriculture, Economic Research Service, “Food Dollar Series,” accessed March 20, 2026, https://www.ers.usda.gov/data-products/food-dollar-series.
[24] American Farm Bureau Federation, “2024 Farm Bankruptcies Highlight Worsening Farm Credit,” Market Intel, https://www.fb.org/market-intel/2024-farm-bankruptcies-highlight-worsening-farm-credit.
[25] ERS Farm Income & Finance Outlook (2023–2025)
[26] Department of Agriculture, Economic Research Service, Farmland Values, 2024 Summary (Washington, DC: USDA ERS, 2024).
[27] U.S. Department of Agriculture, Economic Research Service, “Input Costs Index,” https://www.ers.usda.gov
[28] National Federation of Independent Business v. Sebelius, 567 U.S. 519 (2012), https://www.law.cornell.edu/supremecourt/text/11-796.
[29] Bayer, Stewardship Guide (2025), https://tug.bayer.com/wp-content/uploads/2025/07/Bayer_29115_US_Stewardship_Guide_UPDATED_Cover_Digital_Booklet_2025_Full.pdf
[30] Seed World, “USDA Details Market Shares of Biggest Seed Industry Players,” October 4, 2023, https://www.seedworld.com/us/2023/10/04/usda-details-market-shares-of-biggest-seed-industry-players/
[31] U.S. Department of Agriculture, National Agricultural Statistics Service, Farm Production Expenditures (annual report), https://www.nass.usda.gov
[32] American Farm Bureau Federation. “2024 H‑2A AEWRs On Their Way (Up).” Market Intel, December 4, 2023. https://www.fb.org/market-intel/2024-h-2a-aewrs-on-their-way-up
[33] U.S. Department of Labor, “Adverse Effect Wage Rates (AEWR),” FLAG.dol.gov, https://flag.dol.gov.
[34] U.S. Government Accountability Office, Precision Agriculture: Benefits and Challenges for Technology Adoption and Use, GAO‑24‑105962 (January 2024), https://www.gao.gov/products/gao-24-105962
[35] U.S. Department of Agriculture, National Institute of Food and Agriculture. Impact Summary, February 2, 2026.
[36] Barrow Neurological Institute. “Pesticide Use Correlates with Parkinson’s Cases in Midwest, Western U.S.” March 6, 2024. https://www.barrowneuro.org/about/news-and-articles/as-seen-in/pesticide-use-correlates-with-parkinsons-cases-in-midwest-western-u-s/
[37] Sharma, P., and P. Mittal. “Paraquat (Herbicide) as a Cause of Parkinson’s Disease.” Parkinsonism & Related Disorders (2023). https://doi.org/10.1016/j.parkreldis.2023.105932
[38] U.S. Centers for Disease Control and Prevention. National Occupational Mortality Surveillance (NOMS) Reports. https://www.cdc.gov/noms.
[39] American Farm Bureau Federation. “Hurricanes, Heat and Hardship: Counting 2024’s Crop Losses.” Market Intel, February 18, 2025. https://www.fb.org/market-intel/hurricanes-heat-and-hardship-counting-2024s-crop-losses
[40] Katie Micik Dehlinger. “Bumper Crops, Struggling Prices Weigh on Grain Farmers’ Incomes.” DTN/Progressive Farmer, December 30, 2024. https://www.dtnpf.com/agriculture/web/ag/news/business-inputs/article/2024/12/30/bumper-crops-struggling-prices-weig
[41] Paul E. Norrod, Wayne T. Sanderson, Erin L. Abner, Jacqueline Seals, and Steve Browning, Farmer Suicides Among States Reporting Violent Deaths, 2003–2017 (University of Kentucky: Family and Consumer Sciences Extension; Department of Biosystems and Agricultural Engineering; Department of Epidemiology and Environmental Health).
[42] John Glenn College of Public Affairs, The Ohio State University. “Impacts of Extreme Weather on Farmer Mental Health.” October 30, 2025. https://glenn.osu.edu/research-and-impact/impacts-extreme-weather-farmer-mental-health



