WASHINGTON, DC – Farm income remained heavily concentrated among a small group of states in 2025, while production expenses also clustered in the country’s largest agricultural regions, according to an American Farm Bureau Federation analysis of USDA data.
Farm Bureau economist John Newton says inflation-adjusted U.S. gross farm income reached $653 billion, up 5% from 2024. California led at $72 billion, followed by Iowa at $47 billion and Texas at $43 billion.
The analysis says the top 10 states accounted for more than half of national gross farm income and more than half of production expenses. Inflation-adjusted farm production expenses totaled $486 billion, led by California, Iowa, Nebraska and Texas.
Net farm income reached $167 billion, up nearly $32 billion, or 23%, from 2024. California led at $26 billion, followed by Texas at $15 billion, Iowa at $10 billion and Nebraska at more than $8 billion.
Farm Bureau attributes much of the increase to stronger livestock receipts and federal support, while high input costs continued to limit gains across crop-producing regions.
Farm-Level Takeaway: Strong livestock returns and federal support lifted 2025 farm income, but high production expenses continued to pressure producer margins.