Farm Income Forecast
From the Ag Information Network, I’m Bob Larson. The USDA projects that net farm income will slip lower in 2026 and remain about $48 billion under the record highs of 2022.
Danny Munch, an economist with the American Farm Bureau Federation, says farmers and ranchers are looking at a generational downturn …
MUNCH … “The USDA projects net farm income at about 153 billion in 2026 and about 1.2 billion, down from last year's revised number. Production expenses are estimated to reach a record level at 477 point 7 billion. Livestock receipts are expected to decline. 17 billion crop receipts are expected to say about even, but are still below break-even prices for farmers.”
Munch says the farm income picture looks much different than the last time USDA made a projection in September, down $25 billion, and while problems with the farm economy have been well-documented, there are some potential solutions on the table …
MUNCH … “Farmers need stronger market returns, so income comes from selling commodities, not that aid, and that means improving farm safety net through a fully passed farm bill, strengthening trade and demand and addressing rising inputs. And we need more durable policy fixes, or the financial situation in rural America is going to continue to deteriorate.”
For more information, go to www.fb.org/marketintel.
