Reduced livestock receipts are largest contributor to the forecast decline in U.S. farm income for 2015
Net farm income (NFI) is forecast to decline for the second consecutive year, after reaching recent historic highs in 2013. NFI is expected to fall nearly $33 billion (36 percent) from 2014?s estimate to $58.3 billion in 2015. The 2015 forecast would be the lowest since 2010, and $29.1 billion (in real terms) below the 10-year average. Crop receipts are expected to decrease by $12.9 billion from 2014, led by a projected $7.1-billion decline in corn receipts and a $3.4-billion decline in soybean receipts. Livestock receipts are also expected to decline, with the largest decreases expected for hog and dairy receipts. Total production expenses are forecast to fall by $1.5 billion in 2015, the first decline since 2009. The implementation of new programs under the Agricultural Act of 2014 is resulting in a projected 16-percent increase ($1.6 billion) in government payments in 2015. For additional analysis, see the 2015 Farm Sector Income Forecast, updated August 25, 2015.