Farming and Farm Income
U.S. agriculture and rural life underwent a tremendous transformation in the 20th century. Early 20th century agriculture was labor intensive, and it took place on many small, diversified farms in rural areas where more than half the U.S. population lived. Agricultural production in the 21st century, on the other hand, is concentrated on a smaller number of large, specialized farms in rural areas where less than a fourth of the U.S. population lives. The following provides an overview of these trends, as well as trends in farm sector and farm household incomes.
Gross cash farm income (GCFI) is annual income before expenses and includes cash receipts from the sale of crops and animal/animal products, farm-related income, and Government farm program payments. In inflation-adjusted 2024 dollars, GCFI is forecast at $577.1 billion in 2024, versus $422.7 billion in 2004, with the increase across time primarily due to higher cash receipts. If forecasts are realized, GCFI would decrease by 5.0 percent in 2024 relative to 2023.
Gross farm income reflects the total value of agricultural output plus Government farm program payments. Net farm income (NFI) reflects income after expenses from production in the calendar year and is calculated by subtracting farm expenses from gross farm income. NFI considers cash, noncash income, and expenses and accounts for changes in commodity inventories. In 2023, inflation adjusted net farm income was $150.2 billion and it is expected to decrease by 6.8 percent to $140.0 billion in 2024. When adjusted for inflation, farm production expenses are forecast to decrease by 3.4 percent, reaching $457.5 billion in 2024 relative to 2023.
Crop cash receipts totaled $276.7 billion in calendar year 2023. Receipts from corn and soybeans accounted for $139.1 billion (50.3 percent) of the total.
Cash receipts for animals and animal products totaled $249.6 billion in calendar year 2023. Cattle/calf receipts accounted for $101.1 billion (40.5 percent) of that total, while poultry and eggs receipts accounted for $67.1 billion (26.9 percent), and dairy receipts accounted for $45.9 billion (18.4 percent).