U.S. net farm income to increase in 2025 and decrease slightly in 2026

Gross farm income reflects the total value of agricultural output plus Government farm program payments. Net farm income (NFI) reflects income after expenses from production in the current year and is calculated by subtracting farm expenses from gross farm income. NFI considers cash and noncash income and expenses and accounts for changes in commodity inventories. Inflation-adjusted NFI is expected to increase by 18.2 percent in 2025 from 2024 to reach $157.5 billion. This increase is expected to be followed by a 2.6 percent reduction to $153.4 billion in 2026. Farm production expenses are projected to remain comparable to the 2024 level, increasing by $5.9 billion (1.2 percent) in 2025, and then decreasing by $4.5 billion (0.9 percent) in 2026, after adjusting for inflation.