This week’s DataPoint is brought to you by the Precision Farming Dealer Summit, coming to St. Louis Jan. 5-6. To learn more and register, visit PrecisionDealerSummit.com.

U.S. net cash farm income (NCFI), defined as gross cash income minus cash expenses, is forecast to increase by $36.5 billion (25.3T) from 2024 to $180.7 billion in 2025 in inflation adjusted dollars, according to USDA. U.S. net farm income (NFI) is forecast to increase by $48.8 billion (37.2%) to $179.8 billion in 2025.

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Net farm income is a broader measure of farm sector profitability that incorporates noncash items, including changes in inventories, economic depreciation and gross imputed rental income. Most of the projected increase in 2025 corresponds with higher direct Government payments to farmers, projected to increase from $10.4 billion in 2024 to $40.5 billion in 2025. This increase is expected largely because of supplemental and ad hoc disaster assistance to farmers and ranchers from the American Relief Act of 2025, which authorized economic assistance payments to producers and payments for losses in 2023 and 2024.

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