New data from USDA showed that farmers and ranchers continue to face an economic storm. Chad Smith has details.
Munch: The USDA projects net farm income at about $153 billion in 2026 and about $1.2 billion down from last year’s revised number. Production expenses are estimated to reach a record level at $477.7 billion. Livestock receipts are expected to decline $17 billion. Crop receipts are expected to stay about even, but are still below break-even prices for farmers.
Smith: Munch says the farm income picture looks much different than the last time USDA made a projection in September 2025.
Munch: We haven’t had a picture of the 2025 net farm income number for a while. The biggest surprise from this report is how much weaker 2025 turned out to be. USDA revised their 2025 net farm income number down $25 billion compared to its original forecast. So moving from $180 billion that they forecasted in September for the year to just over $154 billion.
Munch: Farmers need stronger market returns, so income comes from selling commodities, not that aid, and that means improving farm safety net through a fully passed farm bill, strengthening trade and demand and addressing rising inputs. And we need more durable policy fixes, or the financial situation for rural America is going to continue to deteriorate.
