Mizzou Economists: 2025 Farm Income Boosted by High Cattle Prices and One-Time Payments

By Brian Consiglio

Net farm income in the United States is projected to reach $177 billion in 2025, a sharp increase from $128 billion in 2024. This is according to the latest update of the annual U.S. farm income and consumer food price report by the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri’s College of Agriculture, Food and Natural Resources.

Record cattle prices and large one-time government payments have boosted 2025 income, but declines in crop prices and projected reductions in future government support raise concerns about the outlook for 2026.

“Despite strong income this year, much of the gain is temporary,” Pat Westhoff, director of FAPRI, said. “As emergency payments dry up and crop prices remain weak, we project a $31 billion decline in farm income next year.”

The report incorporates data available in August 2025, including United States Department of Agriculture (USDA) crop production estimates and economic forecasts from S&P Global. It also accounts for modifications in key farm programs and tax credits related to biofuel production that were included in the One Big Beautiful Bill Act signed into law in July.

Key findings from the update include:

• Corn prices fall significantly due to record production, with the 2025-26 marketing year (Sept. 1 – Aug. 31) average price projected at $4.05 per bushel, slightly above USDA’s latest estimate. Modest price recovery is expected in 2026-27.
• Soybean prices increase slightly to $10.16 per bushel in 2025-26 as reduced acreage and strong biofuel demand tighten supplies. Continued demand from the renewable fuels sector could drive further gains in 2026-27.
• Other crop prices remain weak, with large global supplies pressuring wheat, rice, sorghum and barley. Cotton is a notable exception, with a smaller crop supporting prices at 66.5 cents per pound.
• Cattle prices hit new records. Tight supplies and strong domestic demand push prices even higher in 2026 before increased production brings moderation.
• Dairy production increases as both cow numbers and yields rebound. However, added supply has weighed on prices, especially for cheese and butter. Exports are expected to help offset the pressure.