In spite of a challenging 2019, farm earnings are expected to rise this year by 10 percent. However, nearly one-third of producers’ net farm income is a result of crop insurance and direct government payments, which does include USDA trade aid.
An Agri-Pulse report says net farm income this year is projected to jump by $8.5 billion compared to last year, coming in at $92.5 billion. The USDA’s Economic Research Service says approximately 31 percent of that income is due to crop insurance benefits and government payments.
Net cash farm income, which is another way to measure a farm’s profitability, is projected to reach $119 billion in 2019. That’s a jump of 15 percent compared to 2018. Commercial farms at which corn is the primary crop are projected to have net cash farm income around $206,000 this year, a 20 percent increase from 2018. Poultry is the only agricultural sector that’s projected to have a net decrease in cash income during 2019.
The average income is projected at around $97,200, which is down from just over $105,000 last year.