The 2016 China Labor Force Dynamics Survey (CLDS) data were used to measure farm household-level income inequality based on the Kakwani relative deprivation index. The effects of farmland rights confirmation on crop income and income inequality among farm households were tested. The study found that farm household income increased by 213% and income inequality among farm households decreased by 0.041 after farmland rights confirmation, and this result was robust. Mechanistically, farmland rights confirmation promotes the acquisition of farm machinery and the mechanization of farm production, which in turn promotes the increase of crop income and common prosperity. Based on this, farmland rights confirmation should be vigorously implemented to clarify the ownership of farmland, and farm machinery subsidies should be used to encourage farm households to mechanize production, which will effectively increase farm households" crop income and help them escape from income inequality.