Measures of farm income this year will reach their highest levels since 2013 and 2014 on the surge in government aid through coronavirus relief and trade assistance, the Agriculture Department says.
Net cash farm income, considered the best measure of producers' cash flow, is expected to jump 22.6% to $134.1 billion, the highest inflation-adjusted total since 2014.
USDA raised both earnings estimates from its September forecast when net farm income for 2020 was projected to be $102.7 billion and net cash farm income was forecast at $115.2 billion.
The higher estimates reflect a fall run-up in commodity prices as well as the release of the second round of Coronavirus Food Assistance Program payments. Government payments are forecast to total $46.5 billion this year, a 107.1% increase from 2019, and $9.3 billion more than ERS forecast in September. Government payments will make up 35.6% of net cash farm income.
Net cash farm income is based on cash receipts from farming, plus government payments and other farm-related income, minus cash expenses. Net farm income factors in non-cash items such as changes in inventories and depreciation. Farm household income, which includes money from farm and non-farm sources, is projected to increase to a median of $86,992 in 2020, an increase of about 4.7% over 2019 figures.
In a new farm income forecast released Wednesday, USDA's Economic Research Service estimated that net farm income would increase by 43.1%, or $36 billion, to $119.6 billion this year. That would be the highest inflation-adjusted sum since 2013.
Net cash farm income, considered the best measure of producers' cash flow, is expected to jump 22.6% to $134.1 billion, the highest inflation-adjusted total since 2014.
USDA raised both earnings estimates from its September forecast when net farm income for 2020 was projected to be $102.7 billion and net cash farm income was forecast at $115.2 billion.
The higher estimates reflect a fall run-up in commodity prices as well as the release of the second round of Coronavirus Food Assistance Program payments. Government payments are forecast to total $46.5 billion this year, a 107.1% increase from 2019, and $9.3 billion more than ERS forecast in September. Government payments will make up 35.6% of net cash farm income.
Net cash farm income is based on cash receipts from farming, plus government payments and other farm-related income, minus cash expenses. Net farm income factors in non-cash items such as changes in inventories and depreciation. Farm household income, which includes money from farm and non-farm sources, is projected to increase to a median of $86,992 in 2020, an increase of about 4.7% over 2019 figures.