FarmPolicy

May 27, 2017

Expected falling crop receipts lead decline in 2014 forecast for net farm income

From USDA’s Economic Research Service:

ImageGen.ashx

USDA’s initial forecast for 2014 net farm income is $34.7 billion lower than current expectations for 2013, but is $8 billion higher than the average of the previous 10 years. Lower crop cash receipts, and, to a lesser degree, a change in the value of crop inventories and reduced government farm payments, drive the expected drop in net farm income. Crop receipts are expected to decrease more than 12 percent in 2014, led by an expected $11-billion decline in corn receipts and a $6-billion decline in soybean receipts. Elimination of direct payments under the Agricultural Act of 2014 and uncertainty about program enrollment during 2014 result in a projected $5.1 billion decline in government payments. On the other hand, total production expenses are forecast to decline $3.9 billion in 2014, which would be only the second decline in the last 10 years. Livestock receipts and value of inventory change also are expected to increase a combined $3.5 billion in 2014, largely due to higher dairy receipts and the potential for expansion of the beef cattle herd for the first time since 2007. This chart is based on the data available in Farm Income and Wealth Statistics, updated February 11, 2014.

kg

Farm Bill; Ag Economy; Immigration; CFTC; and, Food Safety

Farm Bill

A news release yesterday from National Crop Insurance Services indicated that, “On the heels of the 2014 Farm Bill becoming law, Senate Agriculture Committee Chairwoman Debbie Stabenow (D-Mich.) addressed the crop insurance industry yesterday and noted that crop insurance is now the centerpiece of U.S. farm policy.

“‘Today, crop insurance is the foundation of this Farm Bill and the farm safety net,’ Stabenow, one of the law’s architects, said at the crop insurance industry’s annual convention.”

The update added that, “‘The farmer gets a bill, not a check with crop insurance…and they don’t get help unless they really need it,’ Stabenow said referring to the premiums farmers pay and the indemnities that are only received after losses are verified.

“Stabenow noted that during the debate, farmers stressed their support for crop insurance and asked Congress to strengthen it. And by making crop insurance more readily available to specialty crop growers, she said the policy’s coalition of support has been strengthened.”

(more…)