Farm sector profitability is forecast to decline for the second straight year. Net cash farm income is forecast at $93 billion, down about 28 percent from 2014 levels. Net farm income is forecast to be $55.9 billion in 2015, down about 38 percent from 2014’s estimate of $90.4 billion. If realized, the 2015 forecast for net farm income would be the lowest since 2002 (in both real and nominal terms) and a drop of 55 percent from the recent high of $123.3 billion in 2013.
Livestock receipts are forecast to decrease by $25.4 billion (12 percent) in 2015. As with crop receipts, the primary driver is lower commodity prices, in this case for milk, hogs, broilers, and cattle/calves. Government payments are projected to rise $1.0 billion (10.4 percent) to $10.8 billion in 2015.
Tuesday, November 24 2015/ ERS-USDA/ United States.