USDA Projects Sizable Net Farm Income Increase
Net farm income is now forecast to be 131-billion dollars in 2013. That's up 15.1-percent from 2012's estimate of 113.8-billion. After adjusting for inflation - net farm income in 2013 is expected to be the highest since 1973. The net cash income forecast is down just over three-percent from 2012 at 129.7-billion dollars. Despite the decline - the 2013 forecast would mark just the fourth time net cash income - after adjusting for inflation - has topped 100-billion dollars since 1973. Total expenses are again expected to increase in 2013 - continuing a string of year-to-year increases that have taken place since 2002 - with the exception of 2009. Expenses are projected up 10.9-billion in 2013 to 352-billion dollars. That would be the highest on record in both nominal and inflation-adjusted dollars. USDA says labor and rent are the expense items expected to increase most in 2013 - with producers expected to pay less for fuel and fertilizer. The debt-to-asset ratio and debt-to-equity ratio are expected to reach historic lows. USDA says this confirms the strength of the farm sector's solvency.
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