After several years of good profits, the agriculture sector is facing a much different outlook.
In its latest farm income forecast, the U.S. Department of Agriculture expects net farm income to fall to $58 billion this year, a 36-percent drop from 2014’s $91 billion.
USDA Senior economist Warren Preston says crop receipts could drop by more than 6 percent this year.
“Corn is projected to be down 13 percent, receipts for the oil crops, soybeans and peanuts primarily down by 8 percent,” Preston said. “Specialty crops, virtually level up by six tenths of a percent and wheat down by 13 percent.”
He says livestock receipts could be down 9 percent, with the biggest declines coming in dairy, down 29 percent and hogs, down 27 percent.
The USDA expects total farm production expenses for the year to be down for the first time in six years.
Source: www.brownfieldagnews.com