US net farm income expected to decline 32% in 2015

US net farm income is predicted to be $73.6 billion in 2015.

This figure shows a drop of 32% from the 2014 forecast of $108 billion.

The US Department of Agriculture is reporting that this will be the lowest prediction of net farm income since 2009.

Net farm income in the US is a reflection of the profitability from production that take place in the current calender year.

Net cash income in the US is also expected to decline for 2015 however, not as much a decline as net farm income.

The USDA is expecting crop receipts to decrease by 8%.

“This figure reflects a $6.7-billion decline in corn receipts, a $3.4-billion reduction in fruit/nut receipts, and a $2.2-billion drop in oil crop receipts,” the USDA reports.

Furthermore 2015 livestock receipts are predicted to fall by almost 5%. This is due to a 22.3% decrease in dairy and a 13.8% decline in pig receipts.

Production expenses are predicted to be up by 1%.

There is expected to be a 15% increase in government payments in 2015. This is following the introduction of several new programmes under the 2014 Agricultural Act.

Recent payments are also expected to be exceeded with the introduction of these programmes.

Stakeholders in the US “provide hired labour, leased capital and rental land used in agricultural production,” the USDA states.

These stakeholders do not own what is produced therefore do not share the risks associated with the production of agricultural output, it says.

Payments to stakeholders therefore in 2015 are expected to increase by 3%.

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