The United State Department of Agriculture (USDA), on March 6th, forecasted U.S. net farm income for 2019 to increase 10% from last year, from $63.1 billion in 2018 to $69.4 billion in 2019. This forecast is a positive sign to producers after a drop in farm income in 2018.
The first forecast of the year has historically been lower than the final estimate. Current projections by USDA and FAPRI have farm income remaining below the 90-year average in 2019, but also through the majority of the projection period. Adjusting for inflation, net farm income remains roughly $20 billion below the 18-year historical average.
Developments during the next nine months of the year with respect to crop yields and trade negotiations will have large implications on final net farm income and net cash income estimates.
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