Farm income is projected to increase in 2019, which would be the third year in a row of growing farm income, but the reason for the most recent two years’ increase is because of government payments. • Net cash farm income is projected to be $112.6 billion, which is down 16 percent from the record run of 2012-2014 average, but up 7 percent from last year. • Gross income for 2019 is down only 7 percent from the three year 2012-2104 average (less than half of the net income drop) and is up only 2.1 percent from last year. • Additionally, farm real estate debt is way up. At $257.1 billion, it is up 4.6 percent over last year and up 39 percent over the 2012-2014 average. • Farm cash operating expen...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.