Farm income is predicted to decline in 2016 for the third straight year since reaching record highs in 2013, says a report by the Economic Research Service of the U.S. Department of Agriculture. Net cash farm income is forecast at $90.1 billion, a decline of 14.6 percent, and net farm income at $66.9 billion, a decline of 17.2 percent. Net cash farm income declined 19.8 percent in 2015 and net farm income by 12.7 percent. (USDA graphic: Net farm income from 2000-2016)
While crop receipts are expected to remain mostly unchanged, "animal products receipts are forecast to drop $23.4 billion, about 12.3 percent, in 2016," Spencer Chase reports for Agri-Pulse. "For the second straight year, production expenses are expected to decrease. ERS forecasts a 2.6 percent drop in 2016 after those same expenses fell 8.1 percent in 2015. The 2016 decline is expected to total about $9.2 billion. Expenses peaked in 2014 at $390 billion. Net rent expenses are also expected to drop in 2016 by almost $20 billion, or 1.6 percent."
"Some slight relief looks to be headed to producers as production expenses are predicted to fall while government payments increase," Chase writes. "Those payments are seen rising by $2.1 billion, or just over 19 percent in 2016, pushed by a whopping 159.6 percent jump in payments under the Price Loss Coverage program and a 35.7 percent increase in the Agricultural Risk Coverage program."
While crop receipts are expected to remain mostly unchanged, "animal products receipts are forecast to drop $23.4 billion, about 12.3 percent, in 2016," Spencer Chase reports for Agri-Pulse. "For the second straight year, production expenses are expected to decrease. ERS forecasts a 2.6 percent drop in 2016 after those same expenses fell 8.1 percent in 2015. The 2016 decline is expected to total about $9.2 billion. Expenses peaked in 2014 at $390 billion. Net rent expenses are also expected to drop in 2016 by almost $20 billion, or 1.6 percent."
"Some slight relief looks to be headed to producers as production expenses are predicted to fall while government payments increase," Chase writes. "Those payments are seen rising by $2.1 billion, or just over 19 percent in 2016, pushed by a whopping 159.6 percent jump in payments under the Price Loss Coverage program and a 35.7 percent increase in the Agricultural Risk Coverage program."
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