WASHINGTON — Looking at this year’s farm income, a broad focus of profit is forecasted for an increase, by USDA’s Economic Research Service in its recent “Farm Sector” income report.
“Forecast at $179.8 billion for 2025, net farm income would be $52 billion (40.7 percent) higher than in 2024,” ERS said. “Net cash farm income is forecast at $180.7 billion for 2025, an increase of $40.1 billion (28.5 percent) relative to 2024 (not adjusted for inflation).”
Among the report’s summary findings include its estimated decrease for grain crops but increases for meat and poultry.
“Overall, farm cash receipts are forecast to increase by $24 billion (4.7 percent) from 2024 to $535.2 billion in 2025 in nominal dollars,” the report noted. “Total crop receipts are forecast to decrease by $6.1 billion (2.5 percent) from 2024 levels to $236.6 billion in 2025 following lower receipts for soybeans, corn, and wheat.”
“Conversely, total animal/animal product receipts are projected to increase by $30 billion (11.2 percent) to $298.6 billion in 2025,” the report added. “Receipts for cattle, eggs, hogs, broilers, and turkeys are forecast to rise relative to 2024.”
The growth in animal products is attributed by the agency to offsetting lower quantities and higher prices.
“Broiler receipts are expected to increase $1.6 billion (3.5 percent) in 2025,” ERS said. “Cash receipts for chicken eggs are also projected to grow in 2025, by $7.5 billion (35.4 percent).
The animal product sector exception is for milk, which is estimated to decrease, the agency said.
“Cash receipts from cattle and calves are expected to increase $17.7 billion (15.7 percent), due to sustained growth in prices only partially offset by lower quantities,” the report noted. “Hog receipts are also forecast to rise by $2.6 billion (9.5 percent) due to higher prices in 2025. Milk receipts are expected to fall ($500 million) (1 percent) nominally in 2025.”
Farm production expenses are also forecast by the agency to increase approximately $12 billion during this year, compared to last year, with feed being the largest amount.
“Spending on feed, livestock/poultry purchases, and labor are expected to represent the three largest categories of spending in 2025,” ERS said. “Feed expenses, the largest single expense category, are forecast at $68.6 billion in 2025, falling by $4.6 billion or 6.2 percent compared with 2024.”
“In turn, livestock and poultry purchases are projected at $59.9 billion, rising by $10.6 billion or 21.5 percent compared with 2024,” ERS added.
