USDA says rising expenses will put additional pressure on farm income this year. The department's September forecast puts 2026 net farm income at 158-point-4 billion dollars, down 4-point-3 billion from last year. Adjusted for inflation, that's a decline of 9-point-1 billion dollars, or five-and-a-half percent. Production expenses are moving the opposite direction. USDA expects costs to climb four-and-a-half percent to nearly 493 billion dollars, with fertilizer, fuel and livestock purchases accounting for much of the increase.

Government assistance is also rising sharply. Direct government payments are forecast at 47-point-4 billion dollars — nearly 20 billion more than last year. Farm-sector debt is projected to top 605 billion dollars, up four-point-six percent. The numbers illustrate the continuing margin squeeze facing producers as higher expenses offset stronger revenues in portions of agriculture.

By: NATHAN STUEDLEUSDA says rising expenses will put additional pressure on farm income this year. The department's September forecast puts 2026 net farm income at 158-point-4 billion dollars, down 4-point-3 billion from last year. Adjusted for inflation, that's a decline of 9-point-1 billion dollars, or five-and-a-half percent. Production expenses are moving the opposite direction. USDA expects costs to climb four-and-a-half percent to nearly 493 billion dollars, with fertilizer, fuel and livestock purchases accounting for much of the increase.Government assistance is also rising sharply. Direct government payments are forecast at 47-point-4 billion dollars — nearly 20 billion more than last year. Farm-sector debt is projected to top 605 billion dollars, up four-point-six percent. The numbers illustrate the continuing margin squeeze facing producers as higher expenses offset stronger revenues in portions of agriculture.

USDA forecasts lower farm income