Higher grain and soybean prices will increase U.S. net farm income modestly this year, said a University of Missouri think tank on Monday. The Food and Agricultural Policy Research Institute projected a $5.5 billion increase in net farm income, a broad measure of profits, compared to 2018, in line with a USDA estimate of a $6.3 billion increase.
In either case, 2019 would be the fifth year that farm income is in a rut, following the collapse of the commodity boom in 2014. “Pressure on farm finances appears likely to continue,” said FAPRI in its U.S. Baseline Book. “Projected net farm income increases in 2019… Longer-range projections suggest little change in real net farm income over the next decade, resulting in continued increases in the farm sector’s debt-to-asset ratio.”
While crop prices, except for cotton, are likely to strengthen this year, FAPRI said market prices for livestock would weaken.