2025 Farm Business Analysis Report
DOWNLOADAugust 24, 2026
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This report is based on FINPACK FinAn business analyses through MSU Extension participating farms. It is a gauge of the financial performance of Michigan farms completing the analysis. The Farm Business Summaries are divided into three Whole Farm Analyses subsets:
1) All Participating Farms - Whole Farm Report,
2) Crop Farms Only – Whole Farm Report
3) Dairy Farms Only – Whole Farm Report.
There are also “cost of production” enterprise reports for corn, soybeans and winter wheat.
Farms are included as “crop” or “dairy” if over 70% of their gross farm income comes from their crop sales or milk sales/dairy cattle sales, respectively.
Highlights
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|
2021 |
2022 |
2023 |
2024 |
2025 |
|
All Farms |
|||||
|
Net Farm Income |
$268,246 |
$439,960 |
$42,761 |
$230,488 |
$312,720 |
|
% Return on Farm Assets (FMV) |
6.6 |
8.9 |
1.2 |
4.2 |
6.3 |
|
Net Worth Change (FMV) |
$392,701 |
$434,754 |
$75,244 |
$335,377 |
$453,033 |
|
Debt Replacement Margin |
$183,655 |
$292,407 |
($77,503) |
$108,619 |
$218,228 |
|
Crop Farms |
|||||
|
Net Farm Income |
$308,225 |
$287,762 |
($18,944) |
($39,286) |
$69,996 |
|
% Return on Farm Assets (FMV) |
8.7 |
6.8 |
0.6 |
(0.3) |
2.3 |
|
Net Worth Change (FMV) |
$514,525 |
$312,475 |
$64,915 |
$51,422 |
$227,208 |
|
Debt Replacement Margin |
$239,350 |
$159,064 |
($113,894) |
($113,434) |
($20,553) |
|
Dairy Farms |
|||||
|
Net Farm Income |
$271,739 |
$1,158,690 |
$253,018 |
$1,013,939 |
$916,531 |
|
% Return on Farm Assets (FMV) |
4.7 |
14.7 |
2.6 |
8.5 |
8.1 |
|
Net Worth Change (FMV) |
$278,801 |
$1,069,124 |
$300,530 |
$1,203,490 |
$1,114.663 |
|
Debt Replacement Margin |
$142,821 |
$993,504 |
$80,844 |
$752,234 |
$829,135 |
Interpretation
Average net farm incomes were good in 2024 but still rose markedly from $230,488 in 2024 to $312,720 in 2025. This is an average of all TelFarm Program participating farms. This average net farm income was again boosted by the higher dairy farm incomes. The crop farms are dealing with lower profits due to stubbornly low-price levels on the cash grain crops.
Crop Farms
The average crop farm in 2025 had a net farm income of $69,996, up from ($39,286) in 2024. This is after adjusting for a small increase in 2025 crop inventory value of $10,819 when comparing the ending balance sheet value to the beginning balance sheet value. Still not a level that covers the debt replacement margin was negative at ($20,553). Crop input costs have been increasing over previous years and especially in 2026. The average corn sale price for all farms was a low $4.15 per bushel in 2024 and only increase to $4.33 in 2025.
The bright spot in 2025 was the good average crop yield with the corn yield averaging 191 bushels per acre; and was at 193 bushels per acre for just the crop farms. Soybeans and wheat showed good yields also.
This resulted in an average net farm income increasing from ($39,286) in 2024 to $69,996 in 2025 for crop farms.
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Reported Average Corn Yields and Sale Prices (All Farms) |
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|
|
2021 |
2022 |
2023 |
2024 |
2025 |
|
Avg. Corn Yield bu/ac |
185 |
176 |
180 |
197 |
191 |
|
Avg. Corn Sale $/bu |
$4.27 |
$6.22 |
$5.98 |
$4.15 |
$4.33 |
Dairy Farms
The average dairy farm had a 2025 net farm income of $916,531. A very impressive average net income but still lower than 2022 and 2024. The 2025 average milk sale price was $21.19 per cwt for our reporting dairy farms. This price decreased some from $23.24 in 2024 but still very good, historically. There was also strong beef feeder demand and cull cow prices that helped profits. The recent years have been very good for the health of Michigan dairy farms.
|
Reported Average Milk Sale $ per Cwt |
||||
|
2021 |
2022 |
2023 |
2024 |
2025 |
|
$17.85 |
$25.06 |
$20.21 |
$23.24 |
$21.19 |
Enterprise Analysis
Enterprise Analysis calculates the cost of production and then is adjusted by government payments received and unpaid operator labor. Crop enterprises include corn, corn silage, soybeans, winter wheat, and alfalfa hay. Crop enterprise reports are sorted by owned and cash rent.
Compiled by: John Jones, TelFarm Program Coordinator and Stephanie Lelo, TelFarm Center Support Specialist, AFRE Dept, MSU. MSU-Extension Farm Management Educators Corey Clark, Jon LaPorte, Chris Bardenhagen, and Cheri Burk contributed FINPACK Farm Business Analyses for this report.
