The prices of farm products change depending upon weather and other factors. These factors influence the amount and quality of farm output and the demand for those products. A farm that shows a large profit in one year may show a loss in the following year. Many operators of small farms have business activities away from the farm. The income from these activities often is larger than their farm income.
Farm income varies greatly depending upon the type and size of farm.
For example, vegetable and cotton farms generally produce the highest income. Beef and hog farms generate some of the lowest income. Fruit, corn, and peanut farms have incomes in the middle. Large farms generally produce more income than smaller farms. However, some small farms that produce specialty fruits and vegetables can have a high income.