Slight Increase in Farm Income

“The basic outlook for many farms look better than it did last year.” But just slightly better. This from USDA chief economist Rob Johanson. He told the USDA’s Outlook Forum,.. “In 2020, we expect net farm income to rise slightly from $93.6 to $96.7 billion with higher cash receipts. But we also expect lower farm program payments and lower indemnities on normal weather”. and higher farm sector debt, which is expected to climb up to $425 billion dollars, which would be…” near its peak from the early 1980s.” Johanson expects farm land values to hold steady or rise this year, which would help producers who own most of their farm land.

However,…. “in many places, farmers that are renting land are going to have a difficult time showing cash flow.”

Nonetheless, Johanson says in January, looking at the various polls and barometers of farmer sentiment, the January index hit a new record high,…. “indicating that farmers are very optimistic about the next six months.