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AFBF economist says off-farm income is keeping farmers going

An economist with the American Farm Bureau Federation says off-farm income is helping keep U.S. farming operations afloat.

Danny Munch says a recent Market Intel Report shows 98% of farms receive some form of off-farm income.

“The average on farm income was a loss of $900 in 2023,” he says. “That means that numerically, most operations are losing money from farm related activities. On the flip side, off farm income was almost $80,000, so you can see how that’s offsetting the losses that are occurring.”

He tells Brownfield some respondents are making more money off the farm with a reliable source of income.

“A lot of folks are using off farm income as a way to offset some risk that they face in a volatile marketplace,” he says. “Farmers have had struggles with low crop prices especially the past few years. Having a steady income stream that their family can rely on helps create some stability in their paycheck and allows them to still do that farm business.”

Munch says 60% of farmers work at least one day a week off the farm if their operation makes less than $100,000 in sales per year.

AUDIO: Danny Munch, American Farm Bureau Federation