Alternative Indicators of Farm Operators' Earnings

Official U S Department of Agriculture (USDA)estimates of net farm income, measured in nominal dollars, have fluctuated widely over the past few years When measured in real dollars, net farm income has trended downward, in the aggregate, it approaches the levels of the thirties Far fewer farm operators share in the aggregate, resource efficiency is far greater now than in the thirties, and agriculture's financial management has become increasingly complex and sophisticated Therefore, USDA measures of net farm income may not be reliable indicators of farm earnings This article analyzes several alternative indicators of operator earning