Farm Income


DEFINITION of '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).


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.

  1. Adjusted Gross Income - AGI

    A measure of income calculated from your gross income and used ...
  2. Profit and Loss Statement (P&L)

    A financial statement that summarizes the revenues, costs and ...
  3. Crop Method

    This method of accounting is available for farmers who do not ...
  4. Taxable Income

    The amount of income that is used to calculate an individual's ...
  5. Crop Year

    The time period from one year's harvest to the next for an agricultural ...
  6. Investment Farm

    An agricultural business operation that is purchased and operated ...
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