By Ryan Hanrahan
AgDaily reported that “the U.S. Department of Agriculture has raised its forecast for U.S. farm income in 2026, but the improved headline number masks a more difficult financial picture for farmers as production expenses climb, debt increases and government payments account for a growing share of sector income.“
“The agency’s September farm income forecast projects net farm income at $158.4 billion in 2026, up $5 billion from its February forecast,” AgDaily reported. “Still, that would represent a $4.3 billion, or 2.6 percent, decline from the newly revised 2025 estimate of approximately $162.7 billion. Adjusted for inflation, net farm income is expected to fall $9.1 billion, or 5.5 percent.”
“The latest numbers represent a notable change from the USDA’s February outlook. While the agency increased its 2026 forecast by $5 billion, it raised its estimate for 2025 by an even larger $8.1 billion,” AgDaily reported. “That means the year-over-year decline is now expected to be greater than previously anticipated. In February, the USDA projected net farm income would decline just 0.7 percent in nominal terms and 2.6 percent after inflation in 2026. The September forecast puts those declines at 2.6 percent and 5.5 percent, respectively.
Source : illinois.edu