Farm Income Forecast To Drop, Again
This year will be a tight one financially for most farmers. As Harvest Public Media’s Jeremy Bernfeld reports, the Agriculture Department is forecasting a drop in farm income for the third straight year.
Farmers expect another record harvest for corn and soybeans, the country’s most important crops. That oversupply is pushing down prices, hurting a farmer’s bottom line. The USDA expects a nearly 12 percent cut in net farm income compared to last year. That would put net farm income at its lowest point since 2009.
With prices low, farmers aren't expected to spend on equipment and machinery. That, in turn, could put the rural economy at risk.
One bright spot for farmers: The USDA expects government payments to farmers to increase nearly 25 percent this year, to more than $13 billion.