Net Farm Income Forecast To Increase by Nearly 14 Percent in 2013

Net farm income is forecast to be $128.2 billion in 2013, up nearly 14 percent from 2012’s revised forecast of $112.8 billion. After adjusting for inflation, 2013’s net farm income is expected to be the highest since 1973. Net cash income is forecast at $123.5 billion, down almost 9 percent from 2012 (see table on farm income indicators ). Not all crops produced in 2013 will be sold by the end of the 2013 calendar year; we anticipate substantial increases in the annual quantity and value of crop inventories, particularly for corn. As a result, crop cash receipts are expected to decline in 2013. The small projected increase in livestock receipts is not sufficient to offset increasing expenses. Nevertheless, after adjusting for inflation, net cash income is expected to remain high by historical standards.