U.S. gross cash farm income on an inflation-adjusted basis has gone from a low of around $350 billion to a forecasted $512 billion in 2022. This is the aggregate amount for all producers and landowners in the United States.
The first graph below shows the revenues generated from crops, livestock, government payments, and other cash income from America’s farms. It also highlights the relative importance of each revenue source. Note that current gross farm income adjusted for inflation is not as high as it was in 2012-2014
The second graph provides an inflation-adjusted look at the growth of gross farm income and production expenses over time. Note that the resulting net farm income has generally varied above and below $100 billion during this time and is not as high as it was in 2013.
Net farm income is critically important to agriculture in general and for the individual farmer. It is also one of the components, on an aggregate and individual basis, that determines the value of agricultural land.