USDA ERS - Farming and Farm Income (2024)

FAQs

What is the income of the USDA ERS farm? ›

Net cash farm income reached $202.3 billion in 2022. After decreasing by $41.8 billion (20.7 percent) from 2022 to a forecast $160.4 billion in 2023, net cash farm income is forecast to decrease by $38.7 billion (24.1 percent) to $121.7 billion in 2024.

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.

USDA's most recent estimates for 2024 net farm income provide a very early forecast of the farm financial picture. For 2024, USDA anticipates a decrease in net farm income, moving from $155 billion in 2023 to $116 billion in 2024, a decrease of 25.5%.

In some cases, a decent income can be realized from as little as half an acre of land if you are doing something like greenhouse plant production. Other enterprises, such as pine straw production, beef cattle, or Christmas trees will take considerably more acreage.

What Is Farm Income? Farm income refers to profits and losses that are incurred through the operation of a farm or agricultural business. A farm income statement (sometimes called a farm profit and loss statement) is a summary of income and expenses that occurred during a specified accounting period.

USDA defines a farm as any place that produced and sold—or normally would have produced and sold—at least $1,000 of agricultural products during a given year. USDA uses acres of crops and head of livestock to determine if a place with sales less than $1,000 could normally produce and sell at least that amount.

Earned income includes all the taxable income and wages you get from working for someone else, yourself or from a business or farm you own.

Farming profits or losses are transferred to Form 1040 to calculate your total tax liability for the year. Essentially, Schedule F is to farmers what Schedule C is to sole proprietors in other industries. Internal Revenue Service. “Publication 225 (2023), Farmer's Tax Guide."

Business income (SCH C) is earned income. Farm income that is farm rental income is passive income (SCH F).

Has the 2024 farm bill passed? ›

The U.S. House of Representatives Committee on Agriculture completed its markup of the Farm, Food and National Security Act of 2024 (Farm Bill) on May 24, 2024, and passed the proposed legislation 33-21.

Net cash farm income for calendar year 2024 is forecast at $121.7 billion (down $38.7 billion or 24.1 percent relative to 2023, in nominal dollars). Net farm income is forecast at $116.1 billion (down $39.8 billion or 25.5 percent).

The U.S. Department of Agriculture last week forecast 2024 net farm income at $116 billion, down from $156 billion in 2023 and a record $186 billion in 2022, all in nominal dollars. That would be the fifth-highest on record after the past three years plus 2013.

USDA programs are funded through the annual Agriculture, Rural Development, Food and Drug Administration, and Related Agencies (Ag-FDA) appropriations bill. USDA-RD operates a broad range of programs vital to rural counties and the communities we serve.

Between 2019 and 2020, total direct government payments to farms increased by over 107 percent, bringing the share of farm income from government payments to almost 40 percent.