77% Off-Farm: The Hidden Backbone of Farm Income

A new Market Intel report released April 23, 2025, by the American Farm Bureau Federation highlights just how critical off-farm income is to the survival of farm households across the country. Titled “The Other Paycheck: How Off-Farm Income Keeps Farmers Farming,” the report compiles data from the USDA and Farm Bureau’s own analysis to paint a clear picture: in 2023, only 23% of farm household income came from on-farm sources. The remaining 77% came from off-farm income streams like wages, salaries, pensions, and investments.

This breakdown is a continuation of a decades-long trend, underscoring the economic reality that most farmers cannot rely solely on the income generated from their farms. Off-farm income serves as a vital financial cushion—helping families maintain their operations through fluctuations in commodity markets, extreme weather events, and rising input costs.

The report also points out that while farm income can vary widely year to year, off-farm earnings tend to be more stable, playing an essential role in long-term household resilience. It concludes by emphasizing the importance of recognizing and supporting this dual-income structure in agricultural policy and community planning.