The growth of income generated by farming compared to the growth in farm 

 land value is another consideration. Many farms are transferred from older 

 family members to younger members. The income from production is used to pay 

 off the older family members' control of the farm. If the earning power of a 

 farm does not keep pace with the growth of the farm's value over time, it be- 

 comes exceedingly more difficult to purchase the farm on a payback basis from 

 farm income. In 1954 the percentage of cash receipts for agricultural prod- 

 ucts to value of land and buildings was 15.5% in Southwest Florida and 18.0% 

 for all of Florida. In 1978, the percentages were 14.9% and 19.8%. This sug- 

 gests that it is becoming more difficult for a satisfactory transfer of owner- 

 ship within families to take place. 



The primary influence of the demand for nonfarm use of the land on farm 

 value is controversial. Nonetheless, it is clear that agricultural land is 

 disappearing throughout the Nation, Florida, and Southwest Florida. This pat- 

 tern is anticipated to continue, and the rate of change in land use may even 

 be accelerated as continued population growth and demand for phosphate in- 

 creases land values. 



FARM INCOME, EXPENSES, AND CONSUMER DEMAND 



Historically, farmers have, as an economic group, generally earned less 

 than the average American worker, but this breach is rapidly being closed. 

 For example, in 1970, farm income per person was 25% less than nonfarm income 

 (Wilcox et al. 1974). Farm income is based on cash receipts, government pay- 

 ment, nonmoney income, land rental, and farm services. Florida's gross State 

 farm income has risen steadily since 1954 to $4.1 billion in current dollars 

 in 1979. In 1954-79, Florida's total personal real income grew 454%, but real 

 farm income grew only 145%. The income of individual farmers grew 145%, but 

 the cost of living increased 170%. In short, the American farmer is finding 

 it more and more difficult to make a living at farming. Some are seeking 

 second jobs or receive income from land rental and farm services provided to 

 others. Income from land rental and farm services has helped soften erosion 

 of farm income. 



Gross farm income depends on the quantity of output, and farm prices. 

 Farm output has risen, but real prices at the farm level, as opposed to the 

 retail level, have continued to fall, reflecting greater production and pro- 

 fits per acre. Yet any large increase in production brought about by new 

 technology helps lower prices. Farm prices are less stable than farm produc- 

 tion costs, and this tends to make net farm income fluctuate greater than 

 gross farm income. The trends in gross and real farm income in 1954-78 are 

 shown in Table 11. 



Information on total farm income for Southwest Florida is unavailable. 

 Cash receipts from farm products were about $471 million in current dollars in 

 1978, up nearly 65% since 1974. The real dollar value of the cash receipts 

 has not risen as rapidly. In 1974-78, real cash receipts have fallen as in- 

 flation outpaced earnings. Farmers are better off now than before, but this 

 came about only because the real prices of many farm products have steadily 

 decl ined. 



103 



