USDA: Net farm income to fall 26.6 percent
A Department of Agriculture report released Tuesday predicts net farm income to fall 26.6 percent in 2014, to $95.8 billion.
The USDA’s Economic Research Service attributes the drop to lower commodity receipts, lower government payments and a change in the value of crop inventories.
The 2014 Farm Income Forecast notes that although the net income forecast is the lowest since 2010, it remains $8 billion higher than the previous 10-year average.
Much of the decline is attributed to changes in corn and soybean prices. The USDA also estimates that the elimination of direct payments in the 2014 Farm Bill and other changes in government programs will reduce government payments by 45 percent.
According to the forecast, livestock receipts are expected to increase over 2013, largely on the basis of higher milk prices.
Production expenses are forecast to decline $3.9 billion.