ERS: Farm income to drop nearly one third |

ERS: Farm income to drop nearly one third

Farm income will drop 32 percent in 2014, the Agriculture Department’s Economic Research Service said last week.

Net farm income is forecast to be $73.6 billion in 2015, down nearly 32 percent from 2014’s forecast of $108 billion, ERS said. The 2015 forecast would be the lowest since 2009.

Net cash income is forecast at $89.4 billion, down 22 percent from the 2014 forecast. Net cash income is projected to decline less than net farm income primarily because it includes the sale of carryover stocks from 2014.

Net farm income reflects only the earnings from production that occurred in the current calendar year.

This is the second consecutive year of decline, but net cash and net farm income were at historic highs during 2012-13.

Crop receipts are expected to decline 8 percent, livestock by 5 percent due to drops in dairy and hog receipts, while cattle receipts are expected to reach a new record high in 2015.

–The Hagstrom Report