Source: USDA, 12/11/20


Net farm income, a broad measure of profits, is forecast to increase $36.0 billion (43.1 percent) to $119.6 billion in 2020. In inflation-adjusted 2020 dollars, net farm income is forecast to increase $35.0 billion (41.3 percent) from 2019, increasing for the fourth consecutive year. If realized, net farm income in 2020 in inflation-adjusted terms would be at its highest level since 2013, 32.0 percent above its 2000-19 average of $90.6 billion.

Net cash farm income is forecast to increase $24.7 billion (22.6 percent) to $134.1 billion in 2020. Inflation-adjusted net cash farm income is forecast to increase $23.4 billion (21.1 percent) from 2019, which would put it at its highest level since 2014 and be 22.5 percent above its 2000-19 average ($109.5 billion). Net cash farm income encompasses cash receipts from farming as well as farm-related income, including Government payments, minus cash expenses. It does not include noncash items—including changes in inventories, economic depreciation, and gross imputed rental income of operator dwellings—reflected in the net farm income measure above.

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