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Net cash income: A farm’s actual cash receipts and
expenses in a given year, regardless of the year the goods sold were produced.
In general, it serves as an indicator of the short-term financial condition of
agricultural producers and their ability to pay household expenses, farm
operating expenses, loan payments, and to purchase capital assets such as
machinery. It consists of cash receipts from farm marketings of crop and
livestock products, other cash income from such farm-related sources as machine
hire, custom work and farm recreational activities, and direct government
payments, less production expenses paid in cash. It excludes the non-monetary
components of gross farm income and net
farm income.
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