net farm income

A measurement of the profit or loss associated with a given year’s production. It is an approximation of the net value of agricultural production, regardless of whether the commodities were sold, fed, or placed in inventory during the year. Net farm income equals the difference between gross farm income and total expenses. It includes non-money items such as depreciation, the consumption of farm-grown food, and the net imputed rental value of operator dwellings. Additions to inventory are treated as income. The money and non-money income farm operators realize from farming as a return for labor, investment, and management after production expenses have been paid. Net farm income is measured in two ways: net farm income before inventory adjustment and net farm income after inventory adjustment. Net farm income doesn't include changes in the value of inventories such as crops and livestock at the end of the year.

Authorization Path: 1.2.1.2.12.0