It looks like a substantial drop in farm income according to the United States Department of Agriculture’s new farm income forecast.
Expected from the farm income forecast is a twenty-two percent drop in net cash income for American farmers.
United States Agriculture Secretary Tom Vilsack isn’t exactly surprised by the new numbers.
“After all, there are very little if any government payments involved in this projection because of which the way the new farm bill was restructured, and we’ve obviously seen crop prices come down a bit, which is factored into this projection”, said Vilsack. “To put into proper context, if you look at the 10-year-average of farm income, this is still about 11 billion dollars above that average.”
He says historically, when including adjustments for inflation, this is the 7th largest income projection in the history of agriculture.
So while Vilsack says it’s a substantial drop from last year’s income projections, its nothing to be too concerned about, as he expects 2015’s forecast to jump up as more government payments are expected to come in during that year.