It will be a less profitable year for farmers as low grain,
milk and hog prices cut into income, U.S. Department of Agriculture officials
say.
A big grain carryover and the third-largest corn crop and
second-largest soybean crop on record, but still in the fields, have kept
prices below the cost of production, while the cost of seed, fertilizer and
land has dropped only slightly.
Net farm income is expected to decline 36 per cent to $58.3
billion, the USDA said in a report released Tuesday. That's down from last
year's $91.1 billion and the lowest in nine years.
Two years ago net farm income was at a record high of $123.7
billion. Last year, sliding grain prices were offset in part by record
livestock prices. This year, both are down; crop receipts are expected to fall
6.2 per cent and livestock receipts will be down 9.1 per cent. Expenses,
however, won't drop very far — less than one per cent.
