U.S. Farm Income Net cash income and net farm income initially fall from recent record highs. Net cash income declines through 2019 before generally rising over the latter part of the projection period. Net farm income, which through 2015 fell more sharply from its peak, generally rises after 2016. Projected reductions in prices for most major crops and livestock result in declines in farm cash receipts in 2015-17. Crop cash receipts fall through 2016, while livestock cash receipts decline through 2018. Cash receipts then grow over the rest of the projection period as steady domestic and international economic growth support longer term demand for U.S. agricultural products. direct Government payments are projected to increase to more than $13 billion in 2016 and 2017, largely reflecting lower crop prices that push up payments under the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs of the Agricultural Act of 2014. Government payments then fall in 2018 and 2019 as commodity prices begin to rise. Government payments are projected to increase again in 2020 before falling over the remainder of the projection period. Total farm production expenses and cash expenses fell in 2015 as declines in feed costs and energyrelated input prices combined with reduced acreage to lower expenses for farmorigin and manufactured inputs. Farm production expenses are projected to increase after 2017 as crude oil prices and interest rates rise.
U.S. Farm Income Net cash income and net farm income initially fall from recent record highs. Net cash income declines through 2019 before generally rising over the latter part of the projection period. Net farm income, which through 2015 fell more sharply from its peak, generally rises after 2016. Projected reductions in prices for most major crops and livestock result in declines in farm cash receipts in 2015-17. Crop cash receipts fall through 2016, while livestock cash receipts decline through 2018. Cash receipts then grow over the rest of the projection period as steady domestic and international economic growth support longer term demand for U.S. agricultural products. direct Government payments are projected to increase to more than $13 billion in 2016 and 2017, largely reflecting lower crop prices that push up payments under the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs of the Agricultural Act of 2014. Government payments then fall in 2018 and 2019 as commodity prices begin to rise. Government payments are projected to increase again in 2020 before falling over the remainder of the projection period. Total farm production expenses and cash expenses fell in 2015 as declines in feed costs and energyrelated input prices combined with reduced acreage to lower expenses for farmorigin and manufactured inputs. Farm production expenses are projected to increase after 2017 as crude oil prices and interest rates rise.
USDA_Agricultural_Projections_to_2025.docx