USDA Says 2015 Net Farm Income Tumbling Down 36 Percent Compared to 2014Wed, 26 Aug 2015 10:11:42 CDT
Both net cash and net farm income are forecast to decline for the second consecutive year after reaching recent historic highs in 2013, according to newly-released farm sector profitability forecasts published Tuesday by the U.S. Department of Agriculture.
Net cash income is forecast at $100.3 billion, down about 21 percent from 2014 levels. Lower crop and livestock receipts are the main drivers of the change in 2015 net cash farm income from 2014, while cash production expenses are projected down by 1.1 percent. Net farm income is forecast to be $58.3 billion in 2015, down 36 percent from 2014's estimate of $91.1 billion. The 2015 forecast for net farm income would be the lowest since 2006 (since 2002 in inflation-adjusted terms) and a drop of nearly 53 percent from the record high of $123.7 billion in 2013.
Both livestock and crop receipts show substantial drops.
Crop receipts for 2015 are expected to decrease by $12.9 billion (6.2 percent) in 2015, led by a projected $7.1-billion decline in corn receipts, $3.4 billion in soybean receipts, and $1.6 billion in wheat receipts compared to 2014. Livestock receipts are forecast to decrease by $19.4 billion (9.1 percent) in 2015 largely due to lower milk and hog prices. Government payments are projected to rise 16 percent ($1.6 billion) to $11.4 billion in 2015. Total production expenses are forecast to decrease by $1.5 billion (less than 0.5 percent) in 2015.
Click here for the full 2015 Farm Income report from the Economic Research Service of USDA
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