In 2012, farm households reported receiving a total of $1.8 billion in lease and royalty income from energy production activities, making up about 1% of farm household total income. Payments are highly concentrated, primarily on large farms and in the South and Midwest. Though relatively few farms have energy lease and royalty income (3 percent), it can be an important source of income, particularly for older farmers; for farmers over 65 who receive royalty income, it is the largest single source of income.