Net farm income in Missouri is expected to increase this year and exceed the forecasted gains projected earlier in the year.
According to a report from the Rural and Farm Finance Policy Analysis Center, a 58% increase in net farm income from 2024 is expected, due to an increase in livestock receipts and government payments. Previous forecasts predicted that net farm income would increase by 41% in 2025.
The report reviews Missouri farmers’ cash receipts, production data, government payments and other factors to estimate the state’s net farm income, which is projected at $5.39 billion in 2025
Despite the expected increase, the total crop receipts are projected to decline by 1% to $6.74 billion. This is largely due to a lack of corn and soybean production, with corn receipts accounting for 39% and soybean receipts accounting for 41% of all crop receipts this year.
Livestock receipts were the driving factor behind the elevated income expectations. They are projected to increase by 17% to $8.03 billion in 2025. This is due to higher cattle prices, with cattle receipts accounting for 50% of total livestock receipts in Missouri in 2025.
Despite this year’s predicted increase, the report predicts a 16% decline in net farm income in 2026, as government payments will average out to levels observed between 2018 and 2024. Cash receipts for livestock and crops are also expected to decline.
Missouri Business Alert spoke with Danyelle Chin, a research consultant for the University of Missouri’s Rural and Farm Finance Policy Analysis Center, about the factors driving the income projections and how farmers can be prepared. This interview has been edited for length and clarity.
