1998 Factbook Table of Contents Publications
Page USDA's News and
Current Information USDA ...Homepage
[Agriculture Fact Book 98]
Farm operators have been surveyed through the annual Agricultural Resource Management Study (formerly the Farm Costs and Returns Survey) about the finances and production on their farms since 1985. Beginning in 1988 USDA collected additional information about the operators’ households. In 1996, the most recent year for which the survey data are available, about 98 percent of farms were covered in the household definition. Included are those run by individuals, legal partnerships, and family corporations. Nonfamily corporations, cooperatives, and institutional farms are not included in the household definition.
Like many other U.S. households, farm households receive income from a variety of sources, one of which is farming. The 1996 average household income for farm operators households was $50,360, which is on par with the average U.S. household. About 84 percent of the average farm operator’s household income comes from off-farm sources, and many operators spent most of their work efforts in occupations other than farming. Off-farm income includes earned income such as wages and salaries from an off-farm job and net income from an off-farm business. Off-farm income also includes unearned income, such as interest and dividends, and Social Security.
For the majority of farm operator households, off-farm income is critical. Most U.S. farms are small (less than $50,000 in gross sales) and are run by households that depend mainly on off-farm income. About 39 percent of operators with small farms reported a nonfarm major occupation in 1996, and another 27 percent were retired. Most operators of larger farms reported farming as their major occupation, and their households were more likely to depend on farm income. In 1996, slightly more than a quarter of farm households operated commercial-size farms with sales of more than $50,000. These households provided most of U.S. farm production. However, even in households with the largest farms (sales of at least $500,000), off- farm income averaged $34,950 per household.
Average household income and dependence on off-farm income also vary among types of farm households. For example, 6 percent reported negative household income for 1996. On average, these households lost $36,060 from farming during the year. About 28 percent had household income of $50,000 or more, with farm income averaging $41,509. Among occupational categories, households of operators who reported occupations other than farming or retired had the highest average household income, largely from off-farm sources. Data on operators’ age show that households associated with the oldest and youngest operators had the lowest average household income. Data on operators’ educational level show significant increases in average income with each higher educational level.
1998 Factbook Table of Contents Publications
Page USDA's News and
Current Information USDA ...Homepage