USDA: Farm income to continue to decline
The Agriculture Department’s Economic Research Service reported today that farm sector profitability is forecast to decline in 2016 for the third straight year.
Net cash farm income is forecast at $90.9 billion, down about 2.5 percent from the 2015 forecast levels.
Net farm income is forecast to be $54.8 billion in 2016, down 3 percent. If realized, this would be the lowest since 2002 (in both real and nominal terms) and a drop of 56 percent from its recent high of $123.3 billion in 2013.
Cash receipts are forecast to fall $9.6 billion (2.5 percent) in 2016, led by a $7.9-billion (4.3 percent) drop in animal/animal product receipts and a $1.6-billion (0.9 percent) decline in crop receipts.
Nearly all major animal specialties — including dairy, meat animals, and poultry/eggs — are forecast to have lower receipts, as are vegetables/melons and feed crops.
While overall cash receipts are declining, receipts for several commodities are expected to increase by at least 1 percent relative to 2015 forecast levels.
Direct government farm program payments are projected to rise $3.3 billion (31.4 percent) to $13.9 billion in 2016 in response to the expected price environment.
–The Hagstrom Report
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