Economic Indicators of the Farm Sector: National Financial Summary, 1993

U.S. net farm income was $43.4 billion in 1993, 13.3 percent less than 1992, and net cash income was $58.5 billion, up 1.1 percent from the prior year. Average senior farm operator household income was $38,300 in 1993 of which $5,125 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 approximately 2 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 1993 tended to be weather conditions. Extensive flooding occurred in the Mississippi River basin, its flood plain, and its principal tributaries in the late spring and early summer destroying crops already planted and incapacitating much of the flooded land so as to preclude further production in 1993. A severe drought in the South Atlantic States also inhibited production via reduced yields. Corn production dropped to 6.3 billion bushels from the prior year’s record 9.5 billion bushels. Direct Government payments rose 46 percent in 1993 reflecting disaster assistance arising from the adverse weather. Production expenses rose 5.3 percent after having remained virtually unchanged for three consecutive years. Equity in farm assets was up 3.3 percent in 1993 as the value of farm assets rose by $27.2 billion and farm debt increased $3.3 billion.