risen as rapidly. In 1974-78, real cash receipts have fallen as inflation 

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

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

 dec! ined. 



Government support payments, another component of farm income, steadily 

 increased from a low of 3.2 million current dollars in 1954 to a high of 20.8 

 million current dollars in 1977. The real value of government payments peaked 

 in 1964 and have steadily declined since. The original intent of these sup- 

 port payments was to stabilize farm income by providing relief from widely 

 fluctuating commodity prices. Although providing a temporary solution, sup- 

 port payments have, in some cases, aggravated the problem in the long run. 

 For some of the State and regional products, support payments are compensation 

 whenever the farmer sells below a standard price. In essence, an artificial 

 price above the natural market price is maintained which induces area farmers 

 and ranchers to increase production, further lowering the market price, and 

 widening the gap between the natural and artificial price. These payments 

 appear to encourage low unit production. 



Table 11. Florida farm income (millions of dollars adjusted to 1967 = 100) 

 for intermittent years from 1954 to 1978 (Florida Crop and Livestock Reporting 

 Service. Annual summaries for 1955, 1959, 1960, 1965, 1970, 1975, 1976, 1977, 

 1978). 



Year 



Gross farm 

 income 



Florida 



Real gross 

 farm income 



Real . 

 farm income'^ 



768.4 

 762.5 

 1,124.9 

 1,201.9 

 1,663.8 

 1,547.1 

 1,543.7 

 1,741.4 



303.1 

 362.9 

 380.6 

 344.4 

 600.0 

 506.9 

 436.3 

 677.0 



1954-78 



449.7 



123.3 



123.3 



Net income is gross income, minus production, processing, and distribution 

 costs. 



114 



