Farm income relates to agriculture and other closely related activities of the farms. Off-farm income is not included. Income is revenues less expenses. There are several income indicators allowing different comparisons. Farm net value added (FNVA) represents remuneration to the fixed factors of production (work, land and capital), whether external or family factors. As a result, holdings can be compared irrespective of their family/non-family nature of the factors of production employed. FNVA equals total output (total production value), plus balance of current subsidies and taxes, incl. direct payments, minus intermediate consumption (specific costs and farm overheads) and depreciation. Definition of gross farm income (GFI) is similar except that it does not deduct depreciation. Farm net income (FNI), or family farm income (FFI) in case of farms using unpaid labour force, equals FNVA minus external factors (costs of hired labour, rented land, borrowed capital), plus the balance on subsidies and taxes on investments. FNI (FFI) is the amount available to pay for own production factors (labour, land and capital). The income indicators can be expressed per annual work unit (AWU) for FNVA and FNI, or per family work unit (FWU) for FFI, in order to take into account differences in the size of labour force in the holdings.

Total subsidies - excluding on investments sum up Pillar I and Pillar II subsidies, additional aid and national subsidies. They relate to current operations linked to the farm production and they are generally entered in farm accounts on the basis of entitlements, regardless of the actual reception, with the aim to obtain consistent results between the income components (output/input/subsidies) for a given accounting year.

A farm financial situation is significantly affected by the value of its assets and liabilities. These latter include long & medium-term loans (minimum one year) and short-term loans (less than one year plus outstanding cash payments).Farm Net Worth is defined as the difference between farm total assets and total liabilities at the end of the accounting year.

Management of farm resources influences to a great extent the efficiency and productivity of the farm eco-system. Like in every system there are inputs and outputs.There are notably two types of farm inputs: the natural ones over which farmers have little or no control and the man-derived ones, regrouped in the three categories of work, land and capital.

Total inputs sum up Specific costs, Farming overheads, Depreciation and External factors. They are calculated on the basis of the costs arising from the holder's farming activity and related to the outputs of the current accounting year. They include also amounts relating to the use of outputs produced on the holding as inputs for the farming activity (so called "farm use"). They do not include farm taxes and other dues, which on the contrary are taken into account in the balance between subsidies and taxes on current and non-current operations.

Total external factors sum up Wages paid, Rent paid and Interest paid and may be regarded as the remuneration for inputs that are not the holder's property.

Total outputs refer to what is produced on the farm and either exit it to reach the market or is consumed within the farm (so called "farm consumption"). They sum up total output of crops and crop products, of livestock and livestock products and of other activities including Other Gainful Activities.