USDA Predicts Farm Income Will Close In On $100B This Year

According to the USDA’s latest figures, farm income will reach $96.7 billion in 2020, a 1.4% year over year increase.  That figure is a bit higher than the average annual income since 2000, but well below the peak of $139 billion in 2013.

But the news from USDA is not all positive

The Department of Ag says farm expenses are on the way up.  Compared to 2019, producers expect to spend more this year on feed, labor, property taxes, fuels, speeds, fertilizer and pesticides.  Working capital, the amount of cash available for farmers to fund their operations after paying off all debt due within a year, is forecast to decline by 15% from 2019.  And the value of assets like farmland and machinery is expected to decline by $18.1 billion from 2019, while debt is projected to rise by $2 billion, accounting for inflation.

While no where need levels reported in the 1980s, Financial instability across the industry is also rising.

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