Farm Household Income Forecast for 2021 and 2022—February 2022 Update
Suggested citation for linking to this discussion:
U.S. Department of Agriculture, Economic Research Service. Farm Household Well-being: Farm Household Income Forecast, February 4, 2022.
Median Income of Farm Operator Households Forecast to be Flat in 2021 and Rise in 2022
Median total farm household income is forecast to be relatively flat in 2021 at $83,311 and increase to $88,234 in 2022. That is a nominal increase of 4.1 percent (a 0.1 percent decline after inflation) between 2020 and 2021, and a 5.9 percent nominal increase (a 2.2 percent increase after inflation) in 2022.
Farm households typically receive income from both farm and off-farm sources. Median farm income earned by farm households is forecast to decrease in 2021 to -$1,344 from -$1,198 in 2020, and then forecast to decline further to -$1,385 in 2022. Many farm households primarily rely on off-farm income: median off-farm income in 2021 is forecast at $71,234, an increase of 5.0 percent from $67,873 in 2020, and to continue increasing by 4.4 percent to $74,354 in 2022. This increase is due to higher earned income—income from wages, salary, and nonfarm businesses—and higher unearned income—income from interest, investments, pension and retirement accounts, unemployment compensation and other public transfers. Since farm and off-farm income are not distributed identically for every farm, median total income will generally not equal the sum of median off-farm and median farm income.
See the Farm Household Income and Characteristics data product tables for financial statistics of farm operator households.