Factors that change farm income in the U.S.

What is it about?

Farm income is closely watched indicator of farm financial health. Results from a time series analysis indicate that prices paid (PP) and received by farmers, technological change, interest and exchange rates (ERs), gross domestic product (GDP) and land prices all influence farm income. Increases in farm income arise from shocks to prices received and GDP; while PP, interest rates, and land prices have a negative impact on farm income. Technological progress and ERs switch from having a negative short-run impact, to a positive long-run impact.

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Why is it important?

Farm income influences farm financial decisions