U.S. net farm income is forecast to increase by $20.7 billion, or 20.1%, to $123.4 billion in 2021, according to a Feb. 4, 2022, report from USDA. Net cash farm income was also forecast to increase 9.9% in 2021 to $139 billion. Net farm income is a broader measure of farm sector profitability that incorporates non-cash items, including changes in inventories, economic depreciation, and gross imputed rental income. 

Net farm income is forecast to decline 7.9% to $113.7 billion in 2022, while net cash farm income is forecast down 2.1% to $136.1 billion.

The report stated the following:

"If these forecasts are realized, both net cash farm income and net farm income would remain above their respective 2001-20 averages in 2022. Underlying these forecasts, cash receipts for farm commodities are projected to rise by $13.7 billion, or 3.1%, to $461.9 billion in 2022, their highest level since 2014. During the same period, production expenses are expected to increase by $5.9 billion (1.5%) to $411.6 billion in 2022, offsetting some of this income growth.

"Additionally, direct government payments to farmers are projected to fall by $16.4 billion (58.5%) from 2021 levels to $11.7 billion in 2022, largely due to lower anticipated USDA and non-USDA payments for Coronavirus (COVID-19) pandemic assistance."