Ag economists have been warning for months that farm income is likely to fall this year. New data from USDA’s research arm shows it is set to drop nearly $32 billion.
The ERS farm income forecast shows net farm income, which is a broad measure of profits, will be down $31.8. That is more than 17 percent lower than last year. Cash receipts are set to fall just over $25 billion, with crop receipts down $12 billion. Lower government payments and higher inputs are largely to blame.
Median household income, however, is set to increase. The report forecasts it will be up 1.2 percent after inflation, landing at $99,802. Off-farm income is predicted to go up just over 1 percent after inflation.
