Net farm income in the United States is projected to reach $177 billion in 2025, a sharp increase from $128 billion in 2024. This is according to the latest update of the annual U.S. farm income and consumer food price report by the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri’s College of Agriculture, Food and Natural Resources.
Record cattle prices and large one-time government payments have boosted 2025 income, but declines in crop prices and projected reductions in future government support raise concerns about the outlook for 2026.
“Despite strong income this year, much of the gain is temporary,” Pat Westhoff, director of FAPRI, said. “As emergency payments dry up and crop prices remain weak, we project a $31 billion decline in farm income next year.”
The report incorporates data available in August 2025, including United States Department of Agriculture (USDA) crop production estimates and economic forecasts from S&P Global. It also accounts for modifications in key farm programs and tax credits related to biofuel production that were included in the One Big Beautiful Bill Act signed into law in July.
Key findings from the update include:
Westhoff emphasizes that the projections reflect a snapshot in time and are subject to change as new information becomes available.
“These forecasts are conditional on current policies and market expectations,” Westhoff said. “They provide a useful benchmark for evaluating potential impacts of economic shifts, weather events and future policy changes.”
The update is part of FAPRI’s ongoing efforts to provide policymakers, industry stakeholders and the public with reliable economic analysis of the U.S. agricultural sector.
Additional insights from the farm income report
About FAPRI
FAPRI, a program of distinction in the College of Agriculture, Food and Natural Resources (CAFNR), develops and publishes baseline reports to highlight the impact of current events on agricultural market trends and projections.