The Agriculture Department’s most recent Farm Income Forecast, released Feb. 5, predicted farm income to decline in 2020. USDA’s Farm Income Forecast also predicted farm income to increase in 2020. You read that right, USDA is projecting farm income in 2020 to both rise and fall.
U.S. net farm income, a broad measure of farm profitability, is currently forecast at $96.7 billion, up 3.3%, or $3.1 billion, from the prior year. If realized, net farm income in 2020 would represent the fourth consecutive year of higher net farm income and would be 55% higher than the decade low of $62 billion in 2016. However, it would remain 22% below 2013’s high and would be only slightly higher than the 20-year inflation-adjusted average of $93 billion.
U.S. net cash income, which does not include adjustments such as depreciation, non-money income related to farm-level consumption of the farm’s own production or inventory adjustments that transfer the value of inventory across tax years, is currently forecast at $109.5 billion, down 9%, or $10.9 billion, from 2019.
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