U.S. Department of Agriculture (USDA)forecasts farm income will hit $96.7 billion in 2020 — a 1.4% increase from last year, accounting for inflation. That’s slightly higher than the average annual income since 2000 but well below the 2013 peak of $139 billion.
Meanwhile, farm production costs are getting more expensive, and financial instability is rising. USDA economists say the farm sector is now at its highest risk of insolvency since 2003 — though not near 1980s farm crisis levels.
The value of assets such as farmland and machinery is expected to decline by $18.1 billion from 2019, while debt is projected to rise by $2 billion, accounting for inflation.