Farm sector profits forecast to grow in 2025

USDA’s Economic Research Service forecasts inflation-adjusted U.S. net cash farm income (NCFI), defined as gross cash income minus cash expenses, to increase by $30.6 billion (18.8 percent) from 2024 to $193.7 billion in 2025. This comes after NCFI remained relatively stable in 2024. U.S. net farm income (NFI) is forecast to increase by $37.7 billion (26.4 percent) to $180.1 billion in 2025. Net farm income is a broader measure of farm sector profitability that incorporates noncash items, including changes in inventories, economic depreciation, and gross imputed rental income. This projected growth comes after NFI declined in 2023 and is forecast to have declined in 2024. (The 2024 values are considered forecasts until more complete financial indicators are available later in 2025.) Most of the projected increase in 2025 corresponds to an increase in direct Government payments to farmers, projected to increase from $9.6 billion in 2024 to $42.4 billion in 2025. This increase is expected largely because of supplemental and ad hoc disaster assistance to farmers and ranchers from the American Relief Act of 2025, which became law in December 2024 and authorized economic assistance payments to producers and payments for losses related to natural disasters in 2023 and 2024. If the 2025 forecasts are realized, NCFI and NFI would remain below their all-time highs in 2022. Find additional information and analysis on the USDA, Economic Research Service Farm Sector Income and Finances topic page containing data released February 6, 2025.