Fall in Farm Incomes Expected to Ease in 2016

The USDA projects that 2016 net farm income will fall for the third straight year, but the decline will be less severe.

The department projects 2016 income at $54.8 billion, down 3% from $56.4 billion in 2015. This decline is subtle compared to losses from the previous two years.

In 2013, profits hit a record-setting $123.3 billion, then fell by 56% through 2015.

USDA’s Economic Research Service, which publishes the estimates, said livestock and crop revenues would both fall overall, though a few segments, including turkeys, cotton, rice, sorghum, oil crops and sugar, could see gains.

The report also forecasts direct payments to farmers from government programs to increase by 31% and total $13.9 billion.

Rising debt and falling land prices should boost the nationwide farm debt-to-asset ratio to 13.2%, the report said, up around a half a percent from 2015.

Source: Farm Futures S