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Farm Income Less Important to Most Corn Farm Households

U.S. farm policy supports farm household income in part by aligning government payments with (current and historic) production of commodities like corn, wheat, rice, or cotton. When commodity programs were conceived in the 1930s, government support was a key component of farm income. As economic conditions changed over time, however, commodity production has played a lesser role in farm household income and well-being, while off-farm income has become more important, a trend that has been documented in several ERS studies. One example is a recent analysis of data on corn farms from USDA's 2001 Agricultural Resource Management Survey. It shows that the relative importance of the different ...

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