U.S. net farm income is forecast to fall in 2022

U.S. net farm income is forecast to fall in 2022

Gross farm income reflects the total value of agricultural output plus Government farm program payments. Net farm income (NFI) reflects income after expenses from production in the current year and is calculated by subtracting farm expenses from gross farm income. NFI considers both cash and noncash income and expenses. In 2021, inflation-adjusted NFI is forecast to reach $123.4 billion, increasing 20.1 percent relative to 2020. It is then forecast to decline 7.9 percent to $113.7 billion in 2022 yet remain above its 2020 level. These NFI levels would be the highest since 2013 (inflation-adjusted 2022 dollars). Farm production expenses are projected to increase by 5.1 percent in 2021 relative to 2020 and then increase another 1.5 percent in 2022 (inflation-adjusted 2022 dollars).


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