A report by the University of Missouri predicts more pressure on farm finances over the next several years. The University released the Food and Agricultural Policy Research Institute baseline report Thursday. The report says lower commodity prices have produced a sharp decline in net farm income, and continued pressure is likely. Net farm income in 2015 was less than half the 2013 record level, as farm receipts declined more rapidly than costs. Projected 2016 net farm income of $56 billion is near the 2015 level. The report says modest increases projected for later years leave inflation-adjusted, net farm income at about the same level in 2025 as it was in 2015.
The report also says, if interest rates increase as forecasted, there will be more pressure on farm real estate values.
Source: NAFB News service