USDA has forecasted net farm income for 2014 will be $113.2 billion, down 13.8 percent from 2013’s forecast of $131.3 billion. If that holds true, 2014 net farm income would be the lowest since 2010, but would still remain more than $25 billion above the previous 10-year annual average. Net cash income is forecast at $123 billion, down 6 percent from 2013. Net cash income is projected to decline less than net farm income primarily because it includes the sale of more than $10 billion in carryover stocks from 2013. Net farm income reflects only earnings from current calendar-year production. The forecast was released earlier this week.
After adjusting for inflation, 2013’s net farm income is expected to be the highest since 1973. The 2014 net farm income forecast would be the fifth highest. Total production expenses are forecast to be 4 percent higher in 2014, which would be the fifth consecutive increase since last falling in 2009. Livestock receipts are expected to increase by more than 15 percent in 2014, due to a 21-percent increase in dairy, a 20-percent increase in hog, and a 15-percent increase in cattle receipts. Crop receipts are expected to decrease 7 percent in 2014, led by a $12.8-billion decline in corn receipts.