US farm sector profits forecast to decline in 2018

According to a report released Feb. 7 by the USDA Economic Research Service, U.S. net farm income is forecast to decline $5.4 billion (8.3 percent) to $59.5 billion in 2018, while U.S. net cash farm income is forecast to decline $6.7 billion (6.8 percent) to $91.9 billion, adjusted for inflation. The forecast declines are the result of changes in cash receipts and production expenses. If realized, 2018 net farm income would be the lowest since 2002 and net cash farm income would be at its lowest level since 2009. A forecast decrease in the value of animal/animal product production from $177.4 billion in 2017 to $176.1 billion in 2018 reflects an expected $0.5-billion decrease in cash receipts and a $0.9-billion decrease in the value of inventory adjustment. Read more…