This study investigates the factors that determine the agricultural income of returning farmers in South Korea. For this purpose, Heckman’s two-step method is applied to the survey data of 192 returning farmers who have settled in rural areas and 251 potential returning farmers. According to the empirical results, farming experiences of returning farmers and participation in agricultural production organizations increased agricultural income. By contrast, neither formal schooling nor motivation for rural migration had a significant effect on the agricultural income of returning farmers. Notably, the age of returning farmers and agricultural income illustrate an inverted-U relationship, wherein agricultural income reaches its peak in the late 40s, and subsequently declines.Agricultural income increases as size of land increases. On the contrary, agricultural income is negatively related to the size of off-farm income of returning farmers. These findings suggest that, for higher agricultural income, policies should be directed towards promoting participation of returning farmers in agricultural production organizations, while developing strategies for easing the difficulties associated with expanding the area of cultivated land.