Farm Sector Profits Forecast to Increase in 2019
USAgNet - 03/07/2019
Inflation-adjusted U.S. net cash farm income in 2019 is forecast to increase $2.7 billion to $95.7 billion, while U.S. net farm income (a broader measure of farm sector profitability that incorporates non-cash items, including changes in inventories, economic
depreciation, and gross imputed rental income) is forecast to increase $5.2 billion to $69.4 billion.
The 2019 forecast increases are due to a combination of lower production expenses, which are subtracted out in the calculation of net income, and increases in the value of agricultural sector production.
These factors contributing to higher income are expected to more than offset the forecast decline in direct Government farm payments.
If forecast increases are realized, net farm income and net cash farm income would be 22.9 percent and 11.5 percent below their respective averages calculated over the 2000-17 period.