Net farm incomes in 2015 will be down 36 percent from last year, according to the US Department of Agriculture. That’s the sharpest drop since 1983, notes The Rural Blog.
Farm income hit a record high in 2013. But since then, it’s dropped by 53 percent. Livestock income is also expected to fall 10 percent from last year. The USDA "expects growers to accelerate sales of 2015 crops this year to help generate more cash."
But while livestock and crop receipts are falling, farm expenses aren’t falling as rapidly. All of this leads to a projected decline in farm asset values compared to 2014. Meanwhile, farm debt is expected to increase by almost 6 percent. The primary reason for the decline in assets is lower real-estate value. Land values have dropped about 2 percent since last year.