Farm Income

A farm is a place of cultivated land which is primarily dedicated to agricultural purposes with the sole purpose of producing food and different crops; usually it’s the very basic unit in agriculture. There are different types of farms like pasture, dairy, poultry and small farm to large scale operations. In the recent years, large scale farming has become a huge industry in many countries such as the United Kingdom, New Zealand, Australia and Ireland. The main components of a farm are the stock, equipment, land, fertility, animals, irrigation, feedstuffs and fertilizers.

Farms normally would have some form of livestock to provide meat, milk or eggs for the stock. There are some farms which are purely devoted to farming, there are some which provide services like fruit picking, vineyard and small bakery. For any type of farm, the income generated from it depends mostly on the animal it provides. Livestock provides the main source of the farm’s revenue. There are also some farmers who produce different products from the crops like strawberries, citrus fruits etc. Other products include oats, sugarcane, wheat, oat bran, tobacco, pig meat and milk.

The cost of maintaining a farm and the income from it depend largely on the stock the farm owner has. The initial capitalization required is mainly based on the volume of production and farm land available. If the farm produces a large volume of crops then the farm household income will increase very fast but if the farm produces less crop quantity then the farm income will decrease. The cost of maintaining a farm is dependent on the amount of labor input which is used on the farms and also on the availability of raw materials on the principal farm operator’s area.