Defining the Farm Household Income
A farm is a piece of land which is dedicated mainly to agricultural pursuits with the primary purpose of cultivating agricultural produce and other agricultural products; it’s the primary facility in agricultural food production, where the farmers can easily get the required seeds, tools and equipments for growing the crops. The structure of a farm is usually round, with rows of crops growing on the same plantation, so as to provide optimum growing conditions for the crops. However, modern farms are now changing as the technology and needs of the people involved changes, and so farms have started expanding, thus replacing the traditional farm buildings. Nowadays, there are vast expanses of land available in different areas, but most of them are used for growing agricultural produce.
In order to define the farm household income and the farm family, it is important to first define what exactly it is! Basically, the farm household income is the annual cash flow generated by a farm and its activities. Farm income is an amount of money that can be generated by the farm, during the year, from various activities undertaken on the farm. These activities can include returns to yield, selling the crop, rental income from the farm and any other activities undertaken by the farm owner or farmer.
Another important aspect of this definition is the definition of agricultural produce. The farm income is then defined on the basis of various aspects of production such as the harvested crops, animals, revenue from trading, selling of stock, etc. This definition excludes fencing and seed raising, as these are not considered as tools in farming. So basically, the definition of farm household income is the income obtained from various activities, on the basis of production, and excludes those costs associated with production, such as transportation, marketing, curing, packing, storage and others.