The Living Income – Guidance on calculating farmer income using secondary data


The Living Income Community of Practice (LICoP) is an organisation committed to improving the lives of rural communities. In order to achieve this, LICoP has dedicated themselves to the development of calculation methods for living and actual incomes/wages and providing advice on how to bridge the gap between actual and living incomes/wages.

Project description

To further their goals, LICoP asked Impact Institute to draft a methodology for calculating the actual income of farmers using only, or primarily, secondary data. The calculation of actual income is notoriously difficult, and typically requires primary data. However, primary data collection can be costly and time intensive, meaning a quick analysis of actual farmer incomes is unlikely. To help organisations find a less costly method of actual income assessment, Impact Institute adapted LICoP’s and our own methods for actual income calculation to rely solely or primarily on information that is readily and publicly available.

Benefits to the client

With this new method for actual income calculation, LICoP can promote easy and quick actual income calculations to organisations interested in closing their income gaps. This less costly method will help organisations better understand how prevalent the income gap is and the need to close it.

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