ABSTRACT

This chapter investigates the relationship of farmers' decisions to combine farm income with off-farm wage income and to what extent this affects their total household income. It discusses taxpayer information and agricultural data at the farm household level to study labor decisions and the income of Norwegian farm households and compares with the income situation of all households. Descriptive statistical analysis looking at joint distributions of key structural variables, policy support and income at farm level provides unique information. The data allow a closer look not only with regard to the absolute income difference, but also with regard to regional variation. The group with the lowest income difference is distinguished by lower averages regarding all agricultural characteristics like agricultural area, cereals area, dairy cows and farm labor. While the Norwegian average household achieved a median disposable income of about 400 000 nkr in 2009, farm households realized an additional 123 000 nkr.