BROWSE

Farm Income

Definition

In United States agricultural policy, several measures are used to gauge farm income over a given period of time.

What is 'Farm Income'

Farm income refers to profits and losses incurred through the operation of a farm. A farm income statement (sometimes called a farm profit and loss statement) is a summary of income and expenses that occurred during a specified accounting period. This period is usually the calendar year for farmers (January 1 - December 31).

Explaining 'Farm Income'

In U.S. agricultural policy, farm income can be divided as follows:


Gross Cash Income: the sum of all receipts from the sale of crops, livestock and farm related goods and services, as well as any direct payments from the government.


Gross Farm Income: the same as gross cash income with the addition of non-money income, such as the value of home consumption of self-produced food.


Net Cash Income: the gross cash income less all cash expenses, such as for feed, seed, fertilizer, property taxes, interest on debt, wagers, contract labor and rent to non-operator landlords.


Net Farm Income: the gross farm income less cash expenses and non-cash expenses, such as capital consumption and farm household expenses.


Net Cash Income: a short-term measure of cash flow.


Further Reading


Farm income and production impacts of using GM crop technology 1996–2016
www.tandfonline.com [PDF]
… as poorly developed extension and advisory services, lack of access to finance to fund … exchange rates for each year (source: United States Department of Agriculture Economics Research Service … The analysis focuses on changes in farm income in each year arising from impact …

Farm income sources, farm size and farm technical efficiency in SloveniaFarm income sources, farm size and farm technical efficiency in Slovenia
www.tandfonline.com [PDF]
… as poorly developed extension and advisory services, lack of access to finance to fund … exchange rates for each year (source: United States Department of Agriculture Economics Research Service … The analysis focuses on changes in farm income in each year arising from impact …

Farm income and production impacts of using GM crop technology 1996–2015Farm income and production impacts of using GM crop technology 1996–2015
www.tandfonline.com [PDF]
… as poorly developed extension and advisory services, lack of access to finance to fund … exchange rates for each year (source: United States Department of Agriculture Economics Research Service … The analysis focuses on changes in farm income in each year arising from impact …

Does non-farm income improve the poverty and income inequality among agricultural household in rural Kedah?Does non-farm income improve the poverty and income inequality among agricultural household in rural Kedah?
www.sciencedirect.com [PDF]
… as poorly developed extension and advisory services, lack of access to finance to fund … exchange rates for each year (source: United States Department of Agriculture Economics Research Service … The analysis focuses on changes in farm income in each year arising from impact …

Farm income insurance as an alternative for traditional crop insuranceFarm income insurance as an alternative for traditional crop insurance
www.sciencedirect.com [PDF]
… as poorly developed extension and advisory services, lack of access to finance to fund … exchange rates for each year (source: United States Department of Agriculture Economics Research Service … The analysis focuses on changes in farm income in each year arising from impact …

Factors affecting variability in farm and off‐farm incomeFactors affecting variability in farm and off‐farm income
www.emerald.com [PDF]
… as poorly developed extension and advisory services, lack of access to finance to fund … exchange rates for each year (source: United States Department of Agriculture Economics Research Service … The analysis focuses on changes in farm income in each year arising from impact …

Do Rural Smallholder Farmers Subsidize Farm Investments with Non-farm Income? A Study of Vegetable FarmersDo Rural Smallholder Farmers Subsidize Farm Investments with Non-farm Income? A Study of Vegetable Farmers
www.tandfonline.com [PDF]
… as poorly developed extension and advisory services, lack of access to finance to fund … exchange rates for each year (source: United States Department of Agriculture Economics Research Service … The analysis focuses on changes in farm income in each year arising from impact …

Farm debt and financial instabilityFarm debt and financial instability
www.tandfonline.com [PDF]
… as poorly developed extension and advisory services, lack of access to finance to fund … exchange rates for each year (source: United States Department of Agriculture Economics Research Service … The analysis focuses on changes in farm income in each year arising from impact …



Q&A About Farm Income


Is net farm income a short term or long term measure?

Short term measure.

How can you calculate net farm income?

Net farm income = (gross cash - expenses) + non-cash expenses + capital consumption + household expenses.

Where can you find more information about these documents?

You can find more information at their website, http://www.ers.usda.gov/data-products/farm-sector-financial-statements/.

What is the sum of all receipts from the sale of crops, livestock and farm related goods and services?

Gross cash income.

What does non-money income refer to?

Non-money income refers to the value of home consumption of self-produced food.

What is the Economic Research Service?

The Economic Research Service is a part of the United States Department of Agriculture that publishes information on farm income.

What are some examples of short term measures for farmers ?

Net Cash Income, Farm Household Income, Farm Business Income

Why do you think these measures are considered short terms ?

These measures are considered short terms because they only take into account one year's worth of data .

What are the two measures of farm income?

The income statement and balance sheet.

Are there any other types of measures that would be considered short term ?

Yes, Gross Cash Income would also be considered a short term measure for farmers .

What does ERS publish?

They publish an income statement and balance sheet for the nation's farm sector, as well as state-level financial statements.

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