U.S. net farm income forecast to decline in 2018
Gross farm income reflects the total value of agricultural output plus Government farm program payments. Net farm income (NFI)—which reflects income from production in the current year—is calculated by subtracting farm expenses from gross farm income. NFI considers both cash and noncash income and expenses. Inflation-adjusted net farm income is forecast to stabilize in 2017 and decline 8 percent in 2018, to $59.5 billion, after declining in 2014 through 2016. Inflation-adjusted expenses are projected to be relatively unchanged in 2017 and 2018 after declining in 2015 and 2016.