Income is the main goal of private enterprises. In the market system, two concepts are distinguished: cash income and natural income. The latter is expressed in the form of commodity-material values obtained as a result of labor and used for their own needs.
General concept
Income in kind is products that arise in the process of agriculture, animal husbandry, poultry farming, etc. for the purpose of their own consumption. Together, monetary and in-kind incomes form the household system.
Part of the subsistence economy, as before, is used to strengthen the country's economy. Some collective farms sell their products to the state according to agreed plans, and the rest are sold in the system of local market relations.
Sources of In-kind Income
In-kind income is common in agriculture. It is sourced from several key areas of agriculture. Livestock is the main branch of the economy for the extraction of various types of meat, milk and skins. People who live only on a natural income are forced to sell livestock products in order to cover the costs of keeping and raising livestock, for the purchase of other everyday goods.
Farmers - people who are professionally engaged in subsistence farming, are able to save money by eating from products that bring them a natural income.
Poultry farming is an offshoot of the livestock industry. It is used by agricultural enterprises in order to obtain consumer products in the form of white meat and eggs, by-products - down and feathers. Poultry edible products are sold in the nearest food chains, and by-products are sold in special feather and down factories.
Vegetable growing is one of the most important branches of agriculture, which provides a person with a natural income in the form of vegetables and other dietary products.
Income in kind is subject to personal income tax on a general basis. However, it is impossible to withhold tax on some in-kind income, since it is impossible to calculate the economic benefit received by a person.
However, in-kind income is inferior to the monetary income of households. The household is technologically almost entirely dependent on human labor. Therefore, now it cannot compete with mechanized industry, whose labor productivity is much higher. However, the size of in-kind income increases when an unfavorable economic situation occurs.
Back in the 19th century, income in kind was the main source of food and consumer goods in rural areas. However, in the modern world, housekeeping is only a help in case of instability of the monetary currency. Income in kind today is not able to provide a villager with a sufficient amount of food and everyday goods. This type of income is not a guarantee of human survival.
