Chapter 2 - Farm Household Income
Chapter 2 - Farm Household Income
Farming is not typically the only source of household income for a broiler operator, which also includes off-farm income whether earned (wages and salaries) or unearned (such as pensions or returns on financial assets). Household income from the farms surveyed is reported in Table 2.14 for all farm households and the four size-classes used previously.
Several striking patterns stand out. Off-farm income is important in all size classes. On average, households earned $43,717 in off-farm income, which was substantial even among very large operations ($44,476 on average). Off-farm income accounts for nearly 80% of total household income, on average, for small broiler farms, but still accounts for 34% of the total among very large farms.
As would be expected, total household income and household income from farming rises sharply as farm size increases. While the household’s income from farming averages $27,643 across all farms, it ranged from $10,012 in the small class to $86,343 among very large operations. Very large operations averaged nearly eight times as much production as small operations, and their non-broiler enterprises (crop and livestock cash income) were four times larger.
Average household income for operators of the broiler operations compared favorably to nationwide averages. Mean household income in the United States was $66,570 in 2006, compared with $72,453 for the broiler farm households surveyed (Table 2.14). Median income – half of households earn less and half earn more – was $48,201 for all U.S. households in 2006 and $56,248 among operators of broiler farms.
Table 2.14 - Average household income, primary operator households, 2006
|
Broiler enterprise size class1 |
|||||
|---|---|---|---|---|---|
|
Small |
Medium |
Large |
Very large |
All farms |
|
|
Number of farms |
4,251 |
8,503 |
2,125 |
2,126 |
17,005 |
|
Average household income: |
|||||
|
Total |
$52,717 |
$64,974 |
$77,183 |
$130,819 |
$71,360 |
|
Off-farm |
$42,705 |
$45,233 |
$36,475 |
$44,476 |
$43,717 |
|
Farm |
$10,012 |
$19,741 |
$40,708 |
$86,343 |
$27,643 |
Notes: Non-family farms and farms with more than one household sharing in farm business income are excluded.
1Size classes are based on live weight pounds removed. The small class (less than 1.33 million) included the smallest 25% of farms, the medium class (1.33 to 3.30 million) included the next largest 50 percent of farms, and the two largest classes (3.30 to 4.486 and over 4.486) each had an eighth of all farms.
Source: 2006 Agricultural Resource Management Survey, version 4, production contracts only.
