Farm Income: Several measures are used to gauge the earnings of a farming operation over a given period of time: Gross cash income is the sum of all receipts from the sale of crops, livestock, and farm related goods and services as well as all forms of direct payments from the government. Gross farm income is the same as gross cash income with the addition of nonmoney income, such as the value of home consumption of self-produced food and the imputed gross rental value of farm dwellings. Net cash income is gross cash income less all cash expenses such as for feed, seed, fertilizer, property taxes, interest on debt, wages to hired labor, contract labor and rent to nonoperator landlords. Net farm income is gross farm income less cash expenses and noncash expenses, such as capital consumption, perquisites to hired labor, and farm household expenses. Net farm income is a longer term measure of the ability of the farm to survive as a viable income-earning business, while net cash income is a shorter term measure of cash flow.

 

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Farm Income: Several measures are used to gauge the earnings of a farming operation over a given period of time: Gross cash income is the sum of all receipts from the sale of crops, livestock, and farm r . . . View Full Definition

Off-Farm (Non-Farm) Income: That portion of farm household income obtained off the farm, including nonfarm wages and salaries, pensions, and interest income earned by farm families. On average for all farms in the Unit . . . View Full Definition

Net Cash Income: A farm’s actual cash receipts and expenses in a given year, regardless of the year the goods sold were produced. In general, it serves as an indicator of the short-term financial condition o . . . View Full Definition

Income Support: Generally, programs providing direct, income-supplementing payments to farmers. Intended to protect farm income without affecting market prices. Production flexibility contract payments prov . . . View Full Definition