Farm Income and Expenses (SA45): States and Regions in the U.S., 1969-1997

<p>Table SA45 provides detailed estimates of farm gross income and production expenses and of several different measures of net farm income. Farm gross income consists of estimates for the following items: Cash receipts from the marketing of crops and livestock; income from other farm-related activities, including recreational services and the sale of forest products; government payments to farmers; the value of food and fuel produced and consumed on farms; the gross rental value of farm dwellings; and the value of the net change in the physical volume of farm inventories of crops and livestock. Production expenses (including the expenses associated with farm dwellings) consist of: Purchases of feed, livestock, seed, fertilizer and lime, and petroleum products; hired farm labor expenses (including contract labor); and all other production expenses, including depreciation, interest, rent, taxes, and the repair and operation of machinery. Production expenses and gross farm income excluding inventory change are used to calculate the realized net income of all farms: Gross farm income, excluding inventory change, minus production expenses equals realized net income. Realized net income is then modified to reflect current production through the change-in-inventory adjustment to yield the net income of all farms. Then the income of corporate farms and the salaries paid to corporate officers are subtracted to yield farm proprietors' income. Finally, the addition of farm wages and salaries (including corporate officers' salaries) and other labor income to farm proprietors' income yields total farm earnings (labor and proprietors' income). The BEA State estimates of farm earnings are based on the State estimates of the income of all farms prepared by the Economic Research Service of the U.S. Department of Agriculture (USDA). BEA modifies the USDA estimates to conform to the definitions and classifications of the national income and product accounts. The estimates of the income of corporate farms are prepared by BEA.</p>