In the first farm income projections for 2025, the USDA reported an increase of $41.0 billion in U.S. net farm income to $180.1 billion (nominal terms), up from $139.1 billion, which is the current forecast for 2024.  The inflation-adjusted net farm income is expected to expand by $37.7 billion in 2025 compared with 2024. This forecast indicates net farm income would be 44.8% up compared with its 20-year average, $124.4 billion, yet down from 2022’s record high in inflation-adjusted value.

According to USDA, Net cash farm income is projected to increase to $193.7 billion in 2025, which would be up 21.7% year-over-year see (Figure 1). Net cash farm income includes cash receipts from farming and cash-related income and federal government payments minus cash expenses.

Figure 1. U.S. Net Farm Income and Net Cash Farm Income

Cash receipts generated by the sale of agricultural commodities, are forecast at $515.0 billion, in nominal terms, in 2025, down by $1.8 billion (0.3%) year-over-year (see Figure 2).  According to USDA, the decline is due to expected reductions in crop receipts. Crop cash receipts are forecast to decrease by $5.6...