Net Farm Income Forecast to Fall in 2014

The net farm income is forecast to be $95.8 billion in 2014, according to an updated report released this week by the USDA Economic Research Service. That’s down 26.6 percent from 2013’s forecast of $130.5 billion. If realized, it would be the lowest since 2010. The value of crop production is expected to decline substantially in 2014, falling back to pre-2011 levels.  Commensurate with this drop is an expected decline in both crop cash receipts and the value of crop inventory adjustment. Large anticipated declines in the 2014 price of corn are impacting farm operator decisions regarding a number of their major crops. Review the 2014 Farm Income Sector Forecast.