Analysts Project Rise in Farm Sector Profits

After three consecutive years of decline, farm sector profits are forecast to increase in 2017.

Net cash farm income for 2017 is forecast at $100.4 billion, which is 12.6 percent higher than 2016.

Net farm income, a broader measure of profits, is forecast at $63.4 billion, or 3.1 percent higher than last year.

The stronger forecast growth in net cash income is largely due to an additional $9.7 billion in cash receipts from the sale of crop inventories.

The net cash farm income measure counts those sales as part of current-year income. The net farm income measure counts the value of those inventories as part of prior-year income.

For farm businesses in 2017, the average net cash farm income is forecast to be up by 5.8 percent. The largest increases are forecast for farms specializing in dairy (up 42 percent), hogs (up 38 percent) and cotton (up 31 percent).

The only declines in average net cash income are for farms specializing in specialty crops (down 15 percent) and other livestock (less than 1 percent).