Fulltime Large Farms Feeling Brunt of Income Decrease

Large farm businesses make up slightly less than half of all U.S. farms, but account for over 90% of the production.  And for those farms for this year, the USDA expects over all next cash income to drop 20%.  That will mark the fourth year in a row of falling farm incomes.

USDA chief economist Rob Johansson said when you look at 2018, almost every commodity is down.

“Wheat falling, corn falling, soybeans falling, cotton falling, specialty crops falling and other crops falling, pretty consistently when compared to last year.

Similar situation reported in all areas of livestock.  Johansson noted tariffs are really hurting livestock and dairy products.

So where does this leave the very large farms financially?

Johansson says roughly 10% are either highly or very highly leveraged, a trend that has not changed for the past couple of years.

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