Source: USDA ECONOMIC RESEARCH SERVICE, 3/7/19

Net farm income, a broad measure of profits, is forecast to increase $6.3 billion (10.0 percent) from 2018 levels to $69.4 billion in 2019. This follows a $12.0-billion (16.0 percent) decline forecast for 2018. In inflation-adjusted 2019 dollars, net farm income is forecast to increase $5.2 billion (8.1 percent) from 2018 after the forecast decrease of $13.9 billion (17.8 percent) in 2018. If realized, inflation-adjusted net farm income in 2019 would be 49.0 percent below its highest level of $136.1 billion in 2013 and below its historical average across 2000-17 ($90.0 billion).

Net cash farm income is forecast to increase $4.3 billion (4.7 percent) to $95.7 billion. Inflation-adjusted net cash farm income is forecast to increase $2.7 billion (2.9 percent) from 2018, which nonetheless would be the second lowest real-dollar level since 2009. Net cash farm income encompasses cash receipts from farming as well as farm-related income, including government payments, minus cash expenses. Net farm income is the more comprehensive measure of the two, in that it incorporates noncash items, including changes in inventories, economic depreciation, and gross imputed rental income of operator dwellings.

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