The USDA forecast net farm income of $69.4 billion this year. If accurate, the total would be the third year of net income below $70 billion since 2015. “We’re starting to see ... a new average coming out here,” said USDA economist Carrie Litkowski on Wednesday.
After hitting a pothole in 2018, U.S. net farm income will recover this year under the combined effects of financial belt-tightening and rising crop prices, said the USDA on Thursday. It projected net farm income of $77.6 billion in 2019, which would be the highest total since the commodity boom collapsed in 2014.
U.S. farm income has been in a rut since the collapse of the commodity boom in 2013, and it is likely to grow only slowly after a bump upward in 2019, estimated a University of Missouri think tank.
U.S. farm income will tick upward this year, a sign of stability three years after the collapse of the commodity boom pushed income into a nosedive. Still, even with this year’s upturns, income will be a fraction of 2013’s peak, said the USDA.
Commodity prices are still in a trough but U.S. farm income is on the rise for the first time since 2013 because producers are sending more crops and livestock to market than initially expected, said the USDA. It forecast net cash farm income, a measure of liquidity, of $100.4 billion this year, far stronger than the February forecast of $93.5 billion, but only three-fourths of the record set in 2013.