The USDA is forecasting net farm income for 2015 will be the lowest since 2006 at $58.3 billion which is 36% lower than 2014’s estimate of $91.1 billion. This latest forecast is down nearly 53% from the record high of $123.7 billion in 2013.
Lower crop and livestock receipts are the main reason. According to the USDA’s “2015 Farm Income Forecast” crop receipts for 2015 are forecast to drop by $12.9 billion in 2015 with a projected decline of $7.1 billion in corn receipts, $3.4 billion for soybeans and $1.6 billion for wheat compared to 2014.
Livestock receipts are estimated to decrease by $19.4 billion due to lower hog and milk prices. Government payments are estimated to increase by 16% to $11.4 billion in 2015. Total production expenses are estimated to decrease by less than 0.5% or $1.5 billion.