The U.S. Department of Agriculture’s Economic Research Service (ERS) is forecasting 2014 net farm income at $113.2 billion, down 14% compared to 2013. ERS says this is the result of lower commodity prices, especially for corn; higher input costs for fertilizer, seed, pesticides and the end of direct farm program payments. This reduction in net farm income would be the lowest in four years but still $25 billion above the previous 10-year average.
According to the ERS’s latest “2014 Farm Income Forecast”, crop receipts are expected to decrease more than 7% in 2014, led by a projected $12.8-billion decline in corn receipts and a $6-billion decline in soybean receipts. Livestock receipts are forecast to increase by more than 15% in 2014 largely due to higher prices. With feed costs down and higher prices, the ERS is projecting a 15% increase in receipts for cattle producers, 20% for hog producer and 21% for dairy farmers in 2014.