A farmer builds his income from several sources.
A farmer brought an annual income of $81,480 in 2004 according to a study run by the U.S. Department of Agriculture. These earnings stem from a combination of sources with 24 to 30 percent not coming from farm production.
Off-Farm Income
In 2007, the U.S. Department of Agriculture estimated that the average farmer's net income after all expenses have been subtracted from revenues is $35,000. Many farmers supplement their earnings with off-farm income. Typically, an additional $50,000 comes from renting land, leasing equipment or facilities, pension plans, social security or a part-time job.
Peak Gross Income
About 12 percent of farmers run operations with revenues exceeding $250,000 and produce 84 percent of the U.S. farming products. These tend to represent large family farms.
Government
The U.S. government compensates farmers to cultivate specific commodity goods such as oilseeds, cotton and feed and food grains to help them maintain some profit for goods with low commodity prices. For land with environmental concerns that needs to be retired such as wetlands, the government pays the farmer for not using the land for at least 10 years.
Tags: Department Agriculture
