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Abstract

U.S. net cash farm income (NCFI) was $106.9 billion in 2018, 12 percent below its 10-year average of $121.0 billion when adjusted for inflation. NCFI is a measure of farm profitability and the ability of farmers to continue production, invest in new machinery, expand their operations, meet their loan obligations, and provide for family living expenses. Strong commodity prices and agricultural exports from 2011 to 2014 resulted in high NCFI during that period. Since then, NCFI income has trended lower. While NCFI in 2018 remains below average, declines from these recent highs have not been experienced uniformly by all States.

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