AFBF: USDA Slashes 2025 Farm Income Outlook, Sets Baseline for ‘Significant Pressure’ into 2026

Danny Munch of the American Farm Bureau joined us to discuss USDA’s latest farm income forecast, revisions to prior estimates, and what the updated data means for farmers heading into 2026.

WASHINGTON, D.C. (RFD NEWS) — The U.S. Department of Agriculture (USDA) released its first Net Farm Income Forecast since September, providing an early look at the financial conditions facing farmers in 2026. The report also includes revisions to USDA’s previous estimates for 2025, reshaping how last year’s farm economy is viewed and establishing a new baseline for the year ahead.

American Farm Bureau Federation (AFBF) economist Danny Munch joined us on Friday’s Market Day Report to break down the latest forecast and what it signals for the broader farm economy.

In his interview with RFD NEWS, Munch explained that the new outlook offers insight into how producers may fare financially in 2026, as income pressures continue across much of the agricultural sector.

The updated report also revises figures released last fall, and Munch highlighted how the new numbers differ from the September forecast. Those changes reflect shifts in commodity prices, production costs, and government payments that altered the final picture of farm income in 2025.

Munch addressed how rising farm debt and ongoing income declines are affecting farmers, and how producers are adjusting their operations and financial strategies to manage continued economic pressure.

Related Stories
The investigation does not prove wrongdoing, but it raises federal scrutiny of a major cost center for crop producers.
For decades, U.S. agriculture has planned around feeding a growing world. Experts say that trend could reverse course in the next 30 years.
The reports cover biodiesel, diesel, gasoline grades, ethanol, aviation fuel, kerosene, and specialty fuels.

LATEST STORIES BY THIS AUTHOR:

Steven Snow with the U.S. Small Business Administration joined us to discuss tax relief for rural Americans and the long-term benefits of new provisions impacting farmers and small businesses.
As budget hearings continue on Capitol Hill, policymakers focus on long-term solutions to stabilize the fertilizer market to support U.S. farmers.
Rising global supplies may cap soybean price strength, while sorghum prices hinge heavily on China’s export demand.
AFBF Economist Dr. Faith Parum break down new survey findings on fertilizer affordability and producer sentiment heading into the 2026 growing season.
Sen. Roger Marshall joined us to discuss rising input costs, farm support efforts, and legislation aimed at strengthening domestic fertilizer supply.
Charly Cummings with Superior Livestock Auction joined us to discuss today’s cattle offering, market demand, and what producers should watch as they plan upcoming sales.