Commercial Farmers Watching Household Income Decline

(WASHINGTON, DC) Household income for commercial farmers continues to decline. According to USDA’s Economic Research Service (ERS), the 16.5 percent drop comes primarily in the precipitous drop in farm income since 2013 and a nearly 22 percent increase in farm liabilities. Though some farmers have a primary job off the farm – often referred to as intermediate or recreational farmers – commercial farmers rely most on on-farm sources of income and experience the largest drop in their total household income when farm sector income falls. Farm sector net farm income in 2018 is expected to decline another $9.1 billion, or 12 percent from last year. The declines are being attributed to ongoing trade disputes with China and other countries through tariffs and trade retaliation.