Net farm income takes big drop

According to U.S. Department of Agriculture data, this year’s 36 percent fall in net farm income is the biggest drop since the bad year of 1983. Just two years ago, net farm income set a record, $123.7 billion. This year, USDA sees it collapsing to $58.3 billion, down from 2014’s still-good $91 billion.
A $32.7 billion, 12-month belly flop like that requires almost every ag sector to fall face-first off a cliff and, boy, will they.  This year’s cash sales compared to last, forecasts USDA, show: — corn down an estimated $7.1 billion;–soybeans down $3.4 billion and wheat off by $1.6 billion; — total U.S. dairy receipts down by 29 percent, hog receipts off 27 percent and — total livestock sales down a whopping $19.4 billion. By contrast, government payments show a big increase: USDA pegs 2015 farm program costs at $11.4 billion, 16 percent more than 2014 and the most since 2010.  This bleak picture, issued Aug. 25, stands until USDA issues an update next February...more