News

USDA lowers farm income forecast

After several years of good profits, the agriculture sector is facing a much different outlook.

In its latest farm income forecast, the U.S. Department of Agriculture (or USDA) expects net farm income to fall to $58 billion dollars this year, a 36 percent drop from 2014’s $91 billion.

USDA Senior economist Warren Preston says crop receipts could drop by more than six-percent this year.

“Corn is projected to be down 13%, receipts for the oil crops, soybeans and peanuts primarily down by eight percent,” Preston said. “Specialty crops, virtually level up by six tenths of a percent and wheat down by 13 percent.”

He says livestock receipts could be down nine percent, with the biggest declines coming in dairy, down 29% and hogs, down 27 percent.

The USDA expects total farm production expenses for the year to be down for the first time in six years.