While gross farm income roughly measures the total value of agricultural output, it does not reflect the farm sector’s contribution to that value, nor does it measure the income earned by farm operators and other farm sector stakeholders. Net farm income—which reflects income from production in the current year—is calculated by subtracting farm expenses from gross income. Net farm income is forecast to be $95.8 billion in 2014, down 26.6 percent from 2013’s forecast of $130.5 billion. The 2014 forecast would be the lowest since 2010, but would remain $8 billion above the previous 10-year average.
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