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Net farm income surges, challenges remain for some producers

Net farm income is expected to increase in 2025, but an ag economist says that’s not the reality for all producers.

David Widmar, with Agricultural Economic Insights, says it’s a tale of two ag economies.

“Where we have crop production, they’re at some of the lowest levels that we’ve seen” he says. “When you look at cow-calf producers, it’s about the best time or one of the best years in the last 15 plus years in history. There’s a bifurcation in the farm economy.”

He tells Brownfield the rise is primarily due to additional government payments, but that doesn’t account for the struggles row crop producers continue to face.

“One of the quickest ways that we can change the outlook for commodity prices or grain prices is if we have a weather scare or a really favorable crop,” he says. “But we also need a resolution around this trade uncertainty with China. It would provide a lot of opportunities for the market to figure out which way we’re headed from here.”

Widmar says with overall net farm income expected to decline in 2026, he’s watching for any changes in the market for the rest of the year.

AUDIO: David Widmar, Agricultural Economic Insights