U.S. farm income will jump nearly 20 percent this year, with soaring grain prices boosting farmer profits even as production costs climb, according to a government report.

Net farm income is expected to reach $94.7 billion this year, which would be the second-highest, inflation-adjusted total in 35 years, according to the U.S. Department of Agriculture. Farm income includes all production regardless of when sales take place.

The jump will be driven by a 27 percent increase in returns from soybean sales and 23 percent climb in corn receipts, the USDA said in its quarterly farm income report released Monday. Prices for agricultural commodities have soared in the last year, with corn doubling in price since June.

Livestock and poultry producers won’t fare as well, the USDA added. It said that while costs for crop farmers and livestock producers will rise a similar amount, livestock cash receipts will increase only 3 percent in 2011.

“Because of this, the rise in livestock-related expenses will impinge on net incomes of livestock farms more than crop farms,” the report said.

Overall, increased sales returns will outpace farm production costs, which the USDA projects will climb 7 percent, to $307.5 billion. Total expenses as a percent of gross farm income will be 77 percent, down 1 percent from a year ago, the USDA said.

Much of the cost increase will be due to fertilizer, as suppliers raise prices amid tight supplies and rising farm incomes. The USDA projects fertilizer expenses will climb 14 percent, due to an increase in the number of acres planted and an 11 percent jump in prices.

Pesticide expenses are forecast to climb 7.2 percent due to increased acreage and a 4 percent gain in prices, according to the USDA.

The nearly 20 percent increase in net farm income follows a 27 percent jump the prior year, according to the USDA.