NASHVILLE, Tenn. (RFD-TV) — The U.S. Department of Agriculture (USDA) reduced its 2025 Farm Income Forecast to $179.8 billion, down slightly from February’s $180.1 billion projection. Despite the adjustment, net farm income is still projected to rise nearly 40 percent compared to 2024, largely due to stronger livestock markets and a surge in government payments.
AgAmerica Lending notes that direct government payments are forecast at $40.5 billion, a 356 percent increase from last year, primarily tied to disaster aid and new farm program funding.
Crop markets remain under pressure, however, with receipts for corn, soybeans, and wheat expected to decline. In contrast, receipts for cattle, hogs, and poultry are forecast to be higher on tighter herds and stronger demand.
Rising production expenses remain a concern, with labor and livestock costs climbing even as feed, fuel, and pesticide expenses ease. Farm debt is also forecast to increase to $592 billion, but asset values—especially farmland—continue to support balance sheets. While the short-term outlook is positive, analysts stress that volatility in trade and interest rates could pressure farm finances in the longer term.
Tony’s Farm-Level Takeaway: Livestock and government payments provide a boost, but crop receipts and rising expenses continue to put pressure on margins. Strong financial planning remains key in a volatile environment.
Let’s meet Maggie McDonald of the Magnolia FFA Chapter in Arkansas, one of the National FFA Organization’s American Star Award finalists with a placement in Agribusiness.
October 25, 2024 01:29 PM
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October 24, 2024 03:16 PM
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Let’s meet Rylee Smith from the Oolaga FFA chapter in Oklahoma, one of this year’s Star finalists in agriscience placement.
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Let’s meet Wylie Schwebach from the Moriarty FFA chapter in New Mexico, one of this year’s Star finalists in agricultural placement.
October 24, 2024 12:31 PM
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National FFA Secretary Grant Northfleet shares his motivation behind a year of service, highlighting the organization’s role in providing students with real success through hard work.
October 24, 2024 12:12 PM
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October 10, 2024 01:02 PM
In his latest Firm to Farm blog post, Ag Legal & Taxation Expert Roger McEowen examines contracts, insurance, and property rights and how those legal processes can impact your farm or ranch operation.
October 08, 2024 02:26 PM
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Digital contracts are becoming more common for farmers and ranchers, which means some unique legal issues might arise. RFD-TV’s farm legal expert Roger McEowen briefly examines those.
October 06, 2024 02:15 PM
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The IRS recently issued its 2024 guidance on the extended replacement period for drought (and other weather-related) livestock sales. RFD-TV Ag Legal & Tax expert Roger McEowen discusses the IRS’ extension of the replacement period for livestock sold due to weather-related conditions.
October 01, 2024 11:57 AM
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