Farm Income Falls

Net farm income, a broad measure of profits, is forecast to decrease by 12.1 percent from 2017 to $66.3 billion in 2018. The figure increased by 22.5 percent from 2016 to 2017.

Inflation-adjusted net cash farm income is forecast to decline 10.5 percent to $93.4 billion from 2017 to 2018, which would be the lowest real-dollar level since 2009.

Net cash farm income encompasses cash receipts from farming as well as farm-related income, including government payments, minus cash expenses. Net farm income is a more comprehensive measure that incorporates non-cash items, including changes in inventories, economic depreciation, and gross imputed rental income of operator dwellings.

If realized, inflation-adjusted net farm income would be 3.3 percent above its level in 2016, which was its lowest level since 2002.

Source: USDA, Deere