Ag Economics in the Details
From the Ag Information Network, I’m Bob Larson. USDA has updated its farm sector income forecast for 2025 and projects rising incomes countered by rising costs.
Carrie Litkowski, an Economist with USDA’s Economic Research Service, says overall sector income will see a significant year-over-year increase …
LITKOWSKI … “Net cash farm income is forecast at almost $181 billion which is a $40 billion increase in 2024 or a 28% increase. Net farm income is forecast to increase $52 billion or almost 41%.”
However, upon closer inspection, Litkowski says that income jump is nearly all in animal agriculture …
LITKOWSKI … “Commodity cash receipts, or cash sales, which are forecast to increase $24 billion or almost 5%, this is entirely from animal and animal products. Also, direct government payments are forecasting $40.5 million an increase of $30 billion in 2024. However, dampening income growth a bit, our total production expenses, which are forecast to increase $12 billion or 2.6%.”
Again, that is USDA Economist Carrie Litkowski.
