(NAFB.com) – The USDA’s Economic Research Service forecasts that net farm income, a broad measure of profitability in the agricultural economy, is forecast to drop by 0.7 percent to $153.4 billion in 2026 compared to last year. When adjusted for inflation, net farm income is projected to decrease by $4.1 billion or 2.6 percent. Reuters said that the drop comes despite near-record government payments, which will make up almost 29 percent of producers’ bottom line. “Agency data said without those government payments, net farm income would drop almost 12 percent to $109.1 billion,” Reuters said. “Government payments are doing a lot of the work to support crop producers.” The USDA forecast said producers will receive $30.5 billion in direct support in 2025 and $44.3 billion in 2026, excluding additional payouts from federal crop insurance indemnities. “We haven’t seen these levels since 2020 and 2021 during the COVID-19 upheaval and trade disruptions during President Donald Trump’s first term,” Reuters added.