(Washington D.C.) The U.S.D.A. released data Tuesday stating that farm income will plummet in 2014 as the result of lower corn and soybean prices and reduced government payments.
According to the USDA, farm income is predicted to decline 27 percent to $95.8 billion this year, marking its lowest level since 2010. Net farm income last year was nearly $131 billion, more than double the total from four years earlier, and the highest in thirty years.
The decrease in 2014 would mean the third consecutive year of declining income for Iowa farmers, who dealt with drought two years ago and lower grain prices last year.
Even with the 27-percent decline in income the U.S. Agriculture Department shows the farm economy will remain historically strong, with 2014 net farm income the seventh highest since 1973 after adjusting for inflation, and $8 billion higher than the average of the previous 10 years.
As grain farmer’s prepare for a sharp decline in income, livestock growers face an “optimistic outlook” this year because of the decline in feed prices, higher dairy receipts and the potential for expansion of the beef cattle herd for the first time since 2007 and livestock producers could see revenue at $183.4 billion, up less than 1 percent from last year.
February 12, 2014