Farm-Related Income
Farm-related income is the value derived from those economic
activities reliant on resources of the farm enterprise in addition
to crop and livestock output. Examples are custom harvesting for
cash, forestry sales, and the imputed rental value of the farmhouse.
Why is farm-related income included in the farm income accounts?
- Farm-related income is included to allow a full accounting of
the value of all production originating from farm sector resources.
Such production is only included if the establishment meets the
official definition of a farm and the activity is reliant on resources
that are part of the farming activities. Imputed rent of farm
dwellings are included only if the dwelling is located on the
farm. Forestry sales are included only if harvested from a farm.
Income from custom work is included only if earned with equipment
purchased and used primarily in the farm's production activities.
Which farm income measures include farm-related income?
- Value-added and net farm income include both cash and noncash
value derived from farm-related activities. Net cash income estimates
include only those farm related activities that earn cash payments.
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