Last week USDA projected that net U.S. farm income will decrease by 4.5%, or $5.4 billion, to $113.7 billion this year. Net U.S. farm income is a broad measure of profits. Regardless, this would still be 15.2% above the 20-year average for net farm income. Spiro Stefanou, Administrator of USDA’s Economic Research Service credits this decline to a couple different factors.
And it’s due to a sizable decrease in government payments says Seth Meyer, Chief USDA Economist says that
It was also reported that net cash farm income, which more closely tracks producers’ cash flow, is forecast to rise 1.4% to $136.1 billion. This is 13.6% above the 20-year average. Net cash farm income is based on cash receipts from farming, plus government payments and other farm-related income, minus cash expenses. Net farm income also factors in depreciation and changes in inventory values
