KANSAS CITY, MO – USDA’s Economic Research Service (ERS) forecasts inflation-adjusted net cash farm income (NCFI) to increase by 17.2 percent ($19.8 billion) from last year, totaling $134.7 billion.
U.S. net farm income (NFI) is a broader measure of farm sector profitability that incorporates noncash items, including changes in inventories, economic depreciation, and gross imputed rental income, and is expected to increase by 15.3 percent ($15.0 billion) to $113 billion this season.
If this forecast is realized, NFI would be 20.4 percent above the 20-year average and at the highest level since 2013.
NCFI would be almost 19 percent above its 20-year average and the highest since 2014.
Underlying these forecasts, cash receipts for farm commodities are projected to rise 13.8 percent to their highest level since 2015.
Production expenses are also expected to grow by 3.5 percent during the same period, somewhat moderating income growth.
Additionally, direct Government payments to farmers are expected to fall by more than 40 percent compared with last year’s record high payments.
(SOURCE: All Ag News)