Spencer, IA: (Nov. 26, 2013) – Federal forecasters increased their estimate for U.S. farm income this year to $131-billion, as bumper corn and soybean harvests help farmers offset lower prices for their crops.
Net farm income will rise 15% from last year to the highest level on an inflation-adjusted basis since 1973, according to the U.S. Department of Agriculture.
The income gains reflect a sharp increase in production of corn and soybeans in parts of the Midwest a year after a severe drought hurt yields. Economists say price gains for vegetables, hay and nuts, along with bigger-than-expected corn and soybean crops are behind the gains.
But economists warn the farm-income boom will likely soften next year because of the sharp drop in corn prices that will carry into 2014 and squeeze farmers’ profits. Well Fargo ag economist Michael Swanson commented, “Next year’s income is going to be a lot softer.”