USDA Forecasts farm income will hit $$96.7 Billion in 2020–a 1.4 percent increase from last year, accounting for inflation. That’s a bit higher than the average annual income since 2000, but well below the 2013 peak of $139 billion.
Meanwhile, farm expenses are getting more expensive. Producers are projected to spend more on feed, labor, property taxes, fuel, seeds, pesticides and fertilizer than they did in 2019.
Financial instability across the industry is also rising. USDA economist Carrie Litkowski said the farm sector is now at its highest risk of insolvency since 2003 – though it’s not yet near 1980s farm crisis levels.
– 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.
– Working capital is forecast to decline by 15 percent from 2019. (That’s the amount of cash available for farmers to fund their operations after paying off all debt due within a year.)