According to the USDA, net cash farm income could wrap up 2020 over 25% higher than 2019's number. The USDA's Cheif Economist Rob Johannson said most of that jump is thanks for government payments and a late year rally in commodity prices.

"That translates in to some improvement in the health of the sector."

Johannson said things look better income wise and indeed the farm sector equity value this year will likely be higher by about 1% at almost $2.7 trillion. He continued  while overall farm debt continues to rise it will be up 4%.

"The debt service ratio which is the share of production used for debt payment has fallen again, which is good."

Adding that was not so much a function of better profits, but mostly a function of lower interest rates. Even so, the ratio of farm debt to the value of farm assets is still rising, and it's been increasing since 2013, up to 13.9%. None the less Johansson says farm bankruptcy rates are falling.

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