Farm Income is Forecast to Decline in 2014, But Remain Above Previous 10-year Averages
Net farm income is forecast at $113.2 billion in 2014, down about 14% from the 2013 forecast of $131.3 billion. If realized, the 2014 forecast would be the fourth-highest value since 1970 after adjusting for inflation. Lower cash receipts for crops, and to a lesser degree, higher production expenses and reduced government farm payments, drive the expected drop in net farm income. Net cash income is forecast at $123 billion, down almost 6% from the 2013 forecast. Net cash income is projected to decline less than net farm income primarily because it reflects the sale of more than $10 billion in carryover stocks from 2013. Despite expected record-setting harvests, crop receipts are expected to decrease more than 7 percent in 2014 due to lower prices. Livestock receipts are forecast to increase by more than 15% in 2014, largely due to higher prices. This chart is found in the topic page on the 2014 Farm Sector Income Forecast on the ERS website, updated August 26, 2014.