Net Cash Farm Income
Deflated net cash farm income in 2012 dollars averaged nearly the same during the first 7 years of both the 1970 and current periods of farm prosperity: $105 billion per year (1973-1979) vs. $102 billion per year (2006-2012). Moreover, the highest deflated net cash farm income is similar in the two periods (see Figure 1): $146 billion (1973) vs. $137 billion (2011). Despite these similarities, deflated net cash farm income generally declined over the 1973-1981 period but generally increased over the 2006-2012 period. Thus, deflated net cash farm income during the current period of farm prosperity did not approach the 1973 peak until recently. The difference in time paths of deflated net cash farm income is similar to the difference noted in the previous post in the time path of crop prices received by U.S. farm.