The USDA has revised its February farm income forecast and now expects farm income to climb this year, offering a much-needed rebound after two years of declines. USDA research economist Carrie Litkowski said, “Farm income will increase in 2025, relative to 2024. And this follows declining farm income in 2023 and 2024.”
According to the latest forecast, net farm income is projected to rise by $52 billion year-over-year, while net cash farm income is set to increase by more than $40 billion. Litkowski explained that much of the growth is being driven by livestock markets and federal support. “Most of the expected increase in farm income is coming from higher cash receipts from the sale of animals and animal products. And also, we expect higher payments from government programs to farmers in 2025,” she said.
Government support will play a significant role in the outlook. “Total direct government payments that are expected to be received in 2025 by farmers are forecast at about $40 billion. That’s an increase of about $30 billion from the 2024 level,” Litkowski added.
Even with the improved forecast, cash crop receipts are expected to decline by 5 percent year-over-year, while total production expenses will climb by just over 2.5 percent.
In a separate development, California lawmakers approved legislation allowing the sale of E15 fuel, with the measure now headed to Governor Gavin Newsom for his anticipated signature. California is poised to become the last state in the nation to authorize sales of the 15 percent ethanol blend, marking a major expansion for biofuels in the country’s largest motor fuel market.
