Direct government payments to producers as a share of gross cash farm income (GCFI) have fallen in recent years

GCFI (cash income to farm operations before accounting for expenses) comes from a number of different sources, including sales of crops and livestock, income generated through farm and equipment services to other operators, use of farmland for recreational activities, sales of forest products, crop insurance indemnities, and other farm-related income. Many producers also receive government payments from a variety of Federal farm programs. The share of government payments in total GCFI has varied widely over time, reflecting the effects of variable weather and prices, as well as changes in farm programs, on the sources of farm income. The share has been historically low in recent years, as relatively high commodity prices have reduced price-triggered payments. Government payments in this chart include only payments made directly to producers, and thus do not reflect government support of Federal crop insurance, which has played an increasing role in farm risk management Producers participate in Federal crop insurance through private crop insurance companies, with the Federal Government covering a portion of the crop insurance premiums and other costs associated with providing this insurance. For more information, see the Farm & Commodity Policy topic page.

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