Mean farm operator household income declined in 2008 and 2009 from the record level in 2007, mainly due to declining off-farm earnings, reports John Pender, senior economist with USDA. However, farm household income is forecast to improve in 2010, he says.

 

Despite declining farm household income in 2008 and 2009, mean household income of operators of farm households is still greater than that of all U.S. households, Pender observes. Farm household income varies greatly by farm size, commodity specialization (see chart) and other factors.

 

Both debt and equity declined, mainly due to weaker values for nonfarm assets. Debt-to-asset ratio has been climbing since 2007 but is expected to drop in 2010.