Lower livestock prices darken expectations in farm country
Crop and livestock producers are less optimistic about the economic outlook for the farm sector, according to the Ag Economy Barometer sponsored by Purdue and the CME Group. The chief reason was a decline in cattle prices during May, said Purdue economist Jim Mintert.
U.S. farm income to plummet by one-third in 2015
U.S. farm income will drop to its lowest level in six years under the weight of sharply lower crop prices and a plunge in milk prices, according to a forecast from the Agriculture Department. Net farm income, which reflects earnings from production in the current calendar year, would fall by 32 percent from 2014 levels. The USDA said another measure of the farm sector, net cash farm income, would slump by 22 percent, a smaller decline because it includes revenue from stocks carried over from last year.
Farm sector stronger than expected in a down year
Record livestock prices and bumper crops are blunting greatly a downturn in the farm economy, said the Agriculture Department in its semiannual Farm Sector Income forecast. USDA says net cash farm income, a measure of the ability to pay bills, will drop by 6 percent this year instead of the 22 percent plunge forecast in February.