Litkowski – Farm Economic Performance

At the USDA Ag Outlook Forum, USDA-ARS Senior Economist Carrie Litkowski provided a detailed forecast of the farm sector’s economic performance for 2025. Net farm income is expected to rise nearly 30 percent. “When we look at total cash receipts from commodity sales, they are projected to decline slightly, almost $2 billion, so most of the forecast increase and net income or net profits is coming from direct government payments which are forecast to increase by $33 billion in 2025.” Litkowski noted that farm income constantly shifts due to market fluctuations, policy changes, and external economic factors. Litkowski also pointed out that lower production expenses and stable farm equity will play key roles in shaping the farm economy in the coming year.