In this paper, we develop a theoretically consistent framework to incorporate the environmental effects of agricultural production and the depletion of natural capital caused by agricultural production into the existing income accounts. We apply the framework and adjust the income attributed to the agricultural sector and economy-wide net national product (NNP) for the United States. Estimated adjustments to the income attributed to agriculture are in the range of $4 billion and have declined as a percentage of net farm income since 1982.[PUBLICATION ABSTRACT]