USDA Projects Lower Net Farm Income

USDA projects net farm income, adjusted for inflation, will fall by $4.1 billion in 2026 to $153.6 billion.

While projecting lower farm income for 2026, USDA also dramatically cut its earlier 2025 net farm income projections by $25 billion. That adjustment reflects the farm economy is facing greater challenges than the numbers show.

Net farm income, defined by USDA as "a broad measure of profits," is expected to decline by $4.1 billion, when adjusted for inflation, or about 2.6% lower in 2026 compared to last year. Without that inflation factor, net farm income would come in about 0.7% lower than in 2025.

USDA's Economic Research Service on Thursday released new net farm income projections for 2026.

Lower projected farm income for 2026 reflects four years of largely stagnant income moves after net farm income hit a record $210 billion in 2022.

USDA reports both "net farm income" and "net cash farm income." Net cash farm income encompasses cash receipts from farming, as well as cash farm-related income, including government support, minus cash expenses.

Net cash farm income is projected at $158.5 billion for 2026, an increase of $1.7 billion, or 1.1% higher, than 2025, adjusted for inflation.

Source: DTN