Economic Indicators of the Farm Sector, National Financial Summary, 1992

U.S. net farm income rose 21.5 percent in 1992 to $48.6 billion, while net cash income increased 8 percent to $57.7 billion. Average senior farm operator household income was $40,000 in 1992 of which $4,300 was from farm sources. The senior farm operator makes most of the day-to-day decisions about the operation of the farm business. While farming is an important source of income for the 2.1 million farm operator households, only half of farm operators claim farming as their major occupation. Ninety percent of households receive some income from off-farm sources. The story in 1992 tended to be the weather conditions, which were, for the most part, very favorable with adequate rain and an absence of seasonal high temperatures in summer and early fall. These below-average temperatures eliminated the heat stress that often inhibits production of fall crops and livestock. Corn yields jumped to a record 131 bushels per acre, and yields were high for all crops harvested in both summer and fall. Direct Government payments rose 11.6 percent in 1992 to interrupt a downward trend since the 1987 peak of $16.7 billion. Production expenses remained virtually unchanged for the second consecutive year. Equity in farm assets increased in 1992 as farm debt remained constant and the value of farm assets increased.