Farm Household Income Estimates for 2021 and Forecast for 2022—December 2022 Update

Suggested citation for linking to this discussion:

U.S. Department of Agriculture, Economic Research Service. Farm Household Well-being: Farm Household Income Forecast, December 1, 2022.

Median Income of Farm Operator Households is Forecast to Decline in 2022 When Adjusted for Inflation

Median total farm household income is forecast to increase in 2022 to $94,794 from $92,239 in 2021. That is a nominal increase of 2.8 percent (a 3.3-percent decline after inflation) between 2021 and 2022.

Farm households typically receive income from both farm and off-farm sources. Median farm income earned by farm households is estimated to decline in 2022 to -$661 from $210 in 2021. In recent years, around half of farm households had negative farm income each year. Many farm households primarily rely on off-farm income: median off-farm income in 2022 is forecasted at $88,140, an increase of 6.4 percent from $82,809 in 2021. The forecasted increase in median off-farm income from 2021 to 2022 is mainly due to expected increases (8.1 percent) in median unearned income—income from interest, investments, pension and retirement accounts, unemployment compensation and other public transfers. Earned income—income from wages, salary, and nonfarm businesses is also expected to increase by 4.9 percent. Since farm and off-farm income are not distributed identically for every farm, median total income will generally not equal the sum of median off-farm and median farm income.

See the Farm Household Income and Characteristics data product tables for financial statistics of farm operator households.