Farm Income Decline-USDA
From the Ag Information Network, I’m Bob Larson. USDA released its initial 2026 farm income forecast and as expected, shows a further decline in overall farm income, offset only by government payments.
USDA Economist Carrie Litkowski says the short-term measurement of net cash farm income is a bit brighter, but not longer-term …
LITKOWSKI … “Net cash farm income is forecast at 158.5 billion dollars, which is an increase of about $4.6 billion or 3% from 2025. Net farm income is forecast to fall $1.2 billion, or almost 1%.”
Contributing to the decline is a drop in receipts from commodity sales …
LITKOWSKI … “Cash receipts from commodity sales are forecast to fall $14 billion dollars or almost 3% in 2026, and government payments are forecast to increase by about $14 billion dollars in 2026.”
Meantime, farm expenses continue to rise, as does farm household income from all sources this year, but only slightly …
LITKOWSKI … “Total production expenses are forecast to increase almost $5 billion dollars, or 1%.”
Litkowski says farm household income from all sources this year is forecast up slightly …
LITKOWSKI … “Median total farm household income in 2026 is forecast at $113-thousand dollars, approximately, an increase of about 5%.”
Roughly 90% of farm families have at least one member working off-farm jobs.
