Farm sector profits forecast to increase in 2019

Inflation-adjusted U.S. net cash farm income (gross cash income less cash expenses) is forecast to increase $13.6 billion (12.9 percent) to $119.0 billion in 2019. U.S. net farm income (a broader measure of farm sector profitability that incorporates noncash items including changes in inventories, economic depreciation, and gross imputed rental income) is forecast to increase $7.0 billion (8.2 percent) from 2018 to $92.5 billion in 2019. The forecast increases are due to a combination of lower production expenses, which are subtracted out in the calculation of net income, as well as increases in government payments and farm-related income. These factors contributing to higher income are expected to more than offset the forecast decline in cash receipts from commodity sales. If forecast changes are realized, net farm income would stand at 2.8 percent above its inflation-adjusted average calculated over the 2000-18 period and net cash farm income would be 10.0 percent above its 2000-18 average. Find additional information and analysis on ERS’s Farm Sector Income and Finances topic page, reflecting data released November 27, 2019.