Net farm income took a step backwards in 2012, however the latest forecast by the USDA predicts an increase of six percent, or $6.8 billion in 2013.

The forecast for this year’s net farm income totals 120.6 billion, a slight improvement over $118 billion in 2011 and better than the net total of $113.8 billion in 2012. This year’s expected net farm income is almost double the net total of $60.4 billion from 2009.

Net farm income to rise 6%, cash income lower

USDA reports the forecast for this year’s net farm income is expected to be the second highest since 1973.

See the 2013 farm income statement.

Net cash income this year is expected to decline by over 10 percent, losing $13.5 billion compared to 2012. The lower cash income is a result of higher cash expenses, which the USDA predicts will total $13.4 billion this year.

Total expenses are expected to reach $354.2 billion, the highest yearly total on record, led by higher rent, labor and feed costs. Farm sector assets, debt, and equity are all forecast to increase in 2013 with assets outweighing debt pushed by higher land values. The USDA reports both the debt-to-asset ratio and debt-to-equity ratio are expected to reach historic lows.

Livestock cash income statements are forecasted to be almost five percent higher in 2013, increasing by $8.5 billion to total $180.1 billion. Production value for cattle and calves this year is anticipated to fall 0.7 percent to $66 billion. Although the cattle industry is lower, other hog production value is forecasted to move a billion dollars higher, up 4.7 percent to $23.2 billion.

Cash receipts for crops are expected to fall this year, bringing down total cash receipts. Cash receipts for crops are expected to fall 5.5 percent to $211.1 billion, marking a $12.4 billion fall from 2012.