The expenses of total production for 2019 was $344.6 billion and were in line with prior-year levels. USDA-Economic Research Service’s recently updated report for U.S. farm sector income, wealth, and finances projects total gross income in agriculture of the United States. It includes livestock sales, federal support, as well as cash receipts from stock, at $437.1 billion for 2019, up to $9.3 billion, or % from prior-year levels.
A broad measure of net farm income farm profitability was projected at $92.5 billion, up 10%, or $8.5 billion from 2018. Since 2014, net farm income in 2019 was the highest, but it remains below 25% to 2013’s record high of $123 billion. It is nominally higher than the inflation-adjusted average of $90.5 billion.
In 2019, the average net cash farm income across most major commodities was higher, driving an expected 20% increase in average net income across all of the agriculture. Dairy was the most significant increase in net cash income, rising 47%. Wheat net cash income rose by 35%. Simultaneously, the net cash income for hogs and soybeans climbed 24% and 34%, respectively. The only commodity which declined to a lower net cash income in 2019 was poultry by 8%.
Support for the Farm Economy
The Market Facilitation Program assisted the United State’s farm economy financially. Also, the package approved by Congress of the ad hoc disaster was a massive advantage for the farm economy. Ad hoc payments covered an additional $2 billion. It helped farmers recover from natural disasters like excessive flooding, wildfires, hurricanes, and others. Total federal support in 2019 for farmers was $22.4 billion.
In 2019 most of the net farm income came from the federal assistance program.
The adverse harvesting and growing conditions experienced in 2019 contributed to a smaller supply of oilseeds and grains. But in 2020, the case might not be the same.