Farming and Farm Income
American 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 material 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, farm-related income, and Government farm program payments. In inflation-adjusted 2023 dollars, GCFI is forecast at $580.3 billion in 2023, versus $357.5 billion in 2002, with the increase across time primarily due to higher cash receipts. If forecasts are realized, GCFI would decrease by 7.2 percent in 2023 relative to 2022.
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 current year and is calculated by subtracting farm expenses from gross farm income. NFI considers cash, non-cash income, and expenses and accounts for changes in commodity inventories. The inflation-adjusted net farm income estimate is $189.3 billion in 2022, the highest level on record. In 2023, net farm income is expected to decrease by 25.4 percent relative to 2022. Farm production expenses are projected to increase 3.3 percent in 2023.
Crop cash receipts totaled $278.1 billion in calendar year 2022. Receipts from corn and soybeans accounted for $150.9 billion (54.3 percent) of the total.
Cash receipts for animals and animal products totaled $258.5 billion in calendar year 2022. Cattle/calf receipts accounted for $86.1 billion (33.3 percent) of that total, while poultry and eggs receipts accounted for $77.0 billion (29.8 percent), and dairy receipts accounted for $57.3 billion (22.2 percent).