IARN — From 2015 to 2021, the median total household income for commercial U.S. farms rose an estimated 16 percent, to $278,339 from $238,994.
Commercial farms earn more than $350,000 gross cash farm income regardless of the principal operator’s occupation. USDA’s Economic Research Service reports that in 2021, the median total household income for commercial farms remained above the median income of $75,201 for all U.S. households.
Farm households rely on a combination of on-farm and off-farm sources of income. On-farm income is determined by farm costs and returns that vary from year to year, and in any given year, a majority of farm households report negative farm income. Off-farm sources—including wages, non-farm business earnings, dividends, and transfers—are the main contributor to household income for most farm households.
Because households operating commercial farms rely mostly on on-farm sources of income, they experience the largest shocks in household income when farm sector income rises or falls.
Story courtesy of the Iowa Agribusiness Radio Network.
Photo courtesy of USDA
