The USDA released its August farm income forecast Friday. And economists expect net farm income to come in at $88 billion, up 4.8% year over year. USDA deputy chief Economist, Warren Preston says net cash farm income is also forecast to increase.
“Even though we have both net cash income and net farm income are projected up, actually cash receipts from commodity sales are expected to be down by $2.4 billion, 0.6% relative to 2018.”
So, what’s making up the difference?
“One of those is direct government payments that we’re expecting to increase by $5.8 billion, that’s up 42.5% from 2018, and commodity insurance indemnities to increase by $6.1 billion. That’s an 80% increase from 2018.”
Preston said insurance claims are up because, as he put it, it’s been a difficult planting year nationwide.
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