The Importance of the Non-Farm Rural Economy to Farm Household Income

A recent study (Income Trends for Iowa Farms and Farm Families 2003-2015) by David Peters, associate professor and extension rural sociologist with Iowa State University, summarized current trends in farm income by type of farm operation and pointed to more specific issues regarding the importance of non-farm income to the financial picture of farm households. The study pointed out that net farm income has dropped the past three years for commercial farms.  However, for intermediate farms in Iowa, “incomes have rebounded after several years of stagnation.”  And residence farms have experienced only a minor decline in net farm income, “down 1.1 percent from 2012 levels.” The study pointed out that, “Despite farming being the major occupation of the operator, off-farm earnings were the major source of income for intermediate farm families. Near the conclusion of the Iowa State study, Dr. Peters pointed out that, “A struggling farm economy only highlights the need for non-farm employment opportunities for all farm families. Middle-skill and middle-wage jobs are the key underpinnings of a strong non-farm rural economy in Iowa. These include traditional ‘blue collar’ industries like manufacturing, construction, transportation, and utilities; but also some ‘white collar’ sectors like healthcare and education that employ many middle-skill professionals.