farm income

The farm economy is showing some stability, the U.S. Department of Agriculture says, but the upswing doesn’t extend to all agricultural sectors.

Over the last three years, farm earnings have plummeted, eliciting concerns that the farm economy could tumble toward another farm crisis like the 1980s. For 2018, the USDA expects net farm income to rebound by a modest 3 percent nationwide, to $63 billion.

After years of declining income on America’s farms and ranches, the agricultural sector might have finally hit the floor.  

The latest figures from the U.S. Department of Agriculture expect farmers to bring in more money this year than initially projected. Crop and livestock producers could net $63.4 billion in 2017. That would be an increase of nearly $1 billion from 2016, and would be the first time farmers see a rise in net farm income year-to-year since 2013.

Frank Morris / Harvest Public Media

How low can it go?

That’s what many in farm country asked about the farm economy Tuesday, after the Agriculture Department forecast another plunge this year in profits for farmers.

Net farm income will fall 8.7 percent from last year’s levels, according to the year’s first forecast produced by the U.S. Department of Agriculture’s Economic Research Service (ERS). If realized, that would mark the fourth-straight year of profit declines, after 2013 saw record-highs.

Travis Morrisse / Hutchinson News

From Kansas Agland:

Kansas net farm income in 2015 hit a 30-year low, reaching a level not seen since the 1980s farm crisis.

Accrual net farm income across 1,159 Kansas Farm Management Association farms averaged $4,568, drastically down from a five-year average of $120,000.

United Soybean Board/Flickr

Farmers’ can anticipate a sharp drop in income this year, according to a new report from the U.S. Department of Agriculture.

In fact, the USDA predicts the $113 billion earned in 2014 will be the lowest amount of net farm income in five years. That’s equal to about a 14 percent fall from last year’s record amount, thanks mostly to a massive drop in crop prices.