FAPRI Forecasts Flat Net Farm Income for Next Year10/11/2016
The Food and Agricultural Policy Research Institute (FAPRI) says net farm income will be flat next year despite increased government payments. FAPRI projects net farm income will fall by more than $10 billion this year, and only rise $700,000 next year.
Net farm income is expected to rise almost five percent in 2018 and increase fractionally in 2019.
FAPRI projects government payments of $13.4 billion this year, up from $10.8 billion last year. Next year, those payments are forecast to rise another billion dollars before dropping $4.5 billion in 2018. ARC payments are expected to drop sharply because of the lower Olympic average prices.
FAPRI projects debt-to-asset ratios will rise from 12 percent last year to 14 percent in 2019.