USDA Projecting Higher 2019 Net-Cash and Net-Farm Income

(WASHINGTON, DC) Inflation-adjusted net cash farm income is forecast to increase $5.8 billion (5.4 percent) to $112.6 billion this year, while net farm income (a broader measure of farm sector profitability) is forecast to increase $2.5 billion (2.9 percent) from last year in the United States. According to the Economic Research Service, the forecast increases are due to a combination of lower production expenses, which are subtracted out in the calculation of net income, as well as increases in government payments and farm-related income. These contributions are expected to more than offset the forecast decline in cash receipts. If forecast increases are realized, net farm income would be 2.3 percent below the 20-year average ($90.1 billion), but net cash farm income would be 4.0 percent above its long-term average ($108.3 billion).