Author: Randy Schnepf, Specialist in Agricultural Policy
According to USDA’s Economic Research Service (ERS), national net farm income-a key indicator of U.S. farm well-being-is forecast at $71.5 billion in 2016, down 12% from last year. The 2016 forecast represents the third consecutive year of decline and would be the lowest since 2009 in both nominal and inflation-adjusted dollars. Net farm income is calculated on an accrual basis. Net cash income (calculated on a cash-flow basis) is also projected lower in 2016, down 13% to $94.1 billion. This report is updated to include USDA’s August 30, 2016, farm income update and the August 25, 2016, U.S. agricultural trade outlook update.