Indiana farm income projected to decline in 2026 after 2025 rebound

WEST LAFAYETTE, Ind. — Hoosier net farm income is projected to decline sharply in 2026 after rebounding in 2025, according to the latest Indiana Farm Outlook Report from Purdue University and the Rural and Farm Finance Policy Analysis Center.

Net farm income is expected to fall 34% to approximately $3.10 billion in 2026. The decrease is largely attributed to lower livestock cash receipts and a reduction in government payments.

The downturn follows a strong recovery year in 2025, when net farm income is expected to reach $4.71 billion, up $1.45 billion, or 45%, from 2024.

Michael Langemeier, agricultural economics professor at Purdue, shared a breakdown of report numbers.

“Cash farm receipts increased $232 million from 2024 and 2025, but are expected to decline by $1,033 million in 2026,” he wrote. “The large drop in crop receipts in 2025 was offset by a large increase in livestock receipts and government payments.

“The large decline in projected cash farm receipts in 2026 is primarily due to large decreases in livestock receipts and government payments.”

Other takeaways:

• Corn, soybeans and wheat were the three largest sources of crop revenue.

• Hogs and pigs, poultry and eggs, and dairy represent the three largest sources of livestock revenue in the state.

• Though expected to be much higher in 2025 than they were in 2024, government payments still accounted for only 5% of total revenue in 2025.

View the complete report at tinyurl.com/2025-Indiana-Farm-Income.