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Title page
Contents
Acknowledgments 3
Summary 5
Introduction 7
Data Sources 8
Time Period, Market Fluctuations, and Inflation Effects 10
Farm Classification and Gross Cash Farm Income 10
From Farm Sales to Household Income 13
Farm Programs and Federal Crop Insurance 15
Risk Mitigation 16
Government Program Payment Limits and Eligibility Caps 18
Who Gets the Benefits of Government Payments? 20
Payments From Commodity, Conservation, and Federal Crop Insurance Programs 22
Agricultural Production Shifts to Larger Farms 26
Midpoint Acreages Increase 26
Reasons for the Shift in Production 28
Shifts in Program Payments and Federal Crop Insurance Indemnities 30
Household Income Varies by GCFI Class 33
Payments Shift to Higher Income Households 35
Commodity Program Payments 35
Effects of Fluctuations in Commodity Prices 36
Conservation Payments 38
Federal Crop Insurance Indemnities 40
Three Caveats 42
References 44
Appendix A: A Brief Listing of Major Government Commodity Programs, Conservation Programs, and Federal Crop Insurance Programs, 1991-2015 47
Commodity Programs 47
Conservation Programs 48
Federal Crop Insurance 49
Disaster and Emergency Programs 50
Other Programs 51
Appendix B: Selected Income Data for Farm Households and All U.S. Households 52
Table 1. Magnitude of Federal crop insurance, 1991, 1997, 2003, and 2009-2015 24
Table 2. Income sharing and ownership interest, 2015 43
Figure 1. The flow of income to family farm households 14
Figure 2. Government payments by program for calendar years 1999-2015 17
Figure 3. Federal crop insurance subsidies, indemnities, and premiums for crop years 1991-2015 17
Figure 4. Farm income for all commercial farm households and a typical commercial farm household, 2000-2014 18
Figure 5. The flow of Government payments through the farm sector 21
Figure 6. Ratio of commodity-related payments to production by GCFI class, 1999-2015 23
Figure 7. Farms participating in Federal crop and livestock insurance, 2015 25
Figure 8. Value of production by GCFI class, 1991, 1997, 2003, 2009, and 2015 27
Figure 9. Value of production of selected program crops1 by GCFI class, 1991, 1997, 2003, 2009, and 2015 27
Figure 10. Midpoint acreage for selected major and minor program crops, 1987 and 2012 28
Figure 11. Commodity-related program payments by GCFI class, 1991 and 2015 31
Figure 12. Land-retirement payments by GCFI class, 1991 and 2015 31
Figure 13. Working-land conservation payments by GCFI class, 2006 and 2015 32
Figure 14. Federal crop insurance indemnities by GCFI class, 1997 and 2015 33
Figure 15. Median operator household income by source and GCFI class, 2015 34
Figure 16. Farm household income at selected percentiles of the distribution of commodity-related payments, 1991 and 1996 to 2015 36
Figure 17. Field crop prices, calendar years 1996-2015 37
Figure 18. Field crop prices, calendar years 1996-2015 37
Figure 19. Net farm income, 1991-2015 38
Figure 20. Farm household income at selected percentiles of the distribution of land-retirement payments, 1991 and 1996 to 2015 39
Figure 21. Farm household income at selected percentiles of the distribution of working-land conservation payments, 2006 to 2015 39
Figure 22. Farm household income at selected percentiles of the distribution of Federal crop insurance indemnities, 1997 to 2015 40
Figure 23. Farm household income at the 50th percentile for Government payments-by type of program-and Federal crop insurance, 1991 and 1996-2015 42
Appendix Table B1. Farm household income at selected percentiles of the distribution of commodity-related payments, 1991 and 1996-2015 52
Appendix Table B2. Farm household income at selected percentiles of the distribution of land-retirement payments, 1991 and 1996-2015 53
Appendix Table B3. Farm household income at selected percentiles of the distribution of working-land conservation payments, 2006-2015 54
Appendix Table B4. Farm household income at selected percentiles of the distribution of Federal crop insurance indemnities, 1997-2015 55
Appendix Table B5. Median household income for all U.S. households and U.S. households with a self-employed head, 1991 and 1996-2015 56
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