Farm income is a statistical indicator of the income from farming for a particular country per year or some other period. This statistic is used by governments to determine agricultural policy and performance of the agricultural sector by financial markets.
In United States there are several different gauges of farm income that are used for agricultural policy. These include:
The income statement measures the profitability of a farm business for a particular period of time, usually one year. The balance sheet measures the wealth or financial position of the business at a particular point in time by reporting the farm’s assets, debt, and net worth.
In the United States the Economic Research Service publishes the income statement and balance sheet of the Nation’s farm sector, and the farm sector financial statement for each state.
This article incorporates public domain material from Jasper Womach. Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition (PDF). Congressional Research Service.