Source: USDA ECONOMIC RESEARCH SERVICE, 2/11/14
 
Net farm income is forecast to be $95.8 billion in 2014, down 26.6 percent from 2013’s forecast of $130.5 billion. The 2014 forecast would be the lowest since 2010, but would remain $8 billion above the previous 10-year average. After adjusting for inflation, 2013’s net farm income is expected to be the highest since 1973. In comparison, the 2014 net farm income forecast would be the seventh highest. Net cash income is forecast at $101.9 billion, down almost 22 percent from the 2013 forecast (see table on farm income indicators  ). Net cash income is projected to decline less than net farm income primarily because it reflects the sale of more than $6 billion in carryover stocks from 2013. Net farm income reflects only the earnings from production that occurred in the current year.

Highlights
•      The projected $3.9-billion (1.1 percent) decrease in total production expenses in 2014 would be only the second time expenses declined in the last 10 years.
•      Livestock receipts are expected to increase 0.7 percent in 2014, largely due to a 7-percent increase in dairy receipts.
•      Crop receipts are expected to decrease more than 12 percent in 2014, with an almost $11-billion decline in corn receipts and a decline in soybean receipts of more than $6 billion.
•      The elimination of direct payments under the Agricultural Act of 2014 and uncertainty regarding enrollment and payments during calendar-year 2014 result in a projected 45-percent decline in government payments.
•      Farm equity is projected to reach another nominal record, despite the substantial slowdown in asset growth and the expectation of higher debt levels.
•      Farm financial risk indicators are expected to continue at historically low levels.

To read the full report, click here.