Following a drop in input prices and farm expenses, the U.S. Department of Agriculture (USDA) forecasts the 2016 net farm income will exceed their original estimate. The agency predicts U.S. net farm income will be $71.5 billion this year, according a report. That’s a 30 percent increase from the USDA’s February estimate, but 11 percent lower than 2015’s net income.

“Today’s farm income forecast underscores the unique ability of American farmers and ranchers to plan ahead and make sharp business decisions in a challenging market,” Agriculture Secretary Tom Vilsack said.

Farm expenses, the agency said, will fall to $306.5 billion in 2016—a significant drop from the estimated figures of $324.8 billion in February.

“Falling production expenses, including the price of fuel and inputs, was the largest contributor to this latest rally by farmers,” Vilsack said. “Just last week, farm exports for 2016 were revised up to one of the highest levels on record, demonstrating that U.S. farmers and ranchers continue to beat expectations.”

Livestock and commodity prices have recovered since pig herds were devastated by a virus and drought crippled supplies of row crops and cattle. And today’s surplus has caused commodity prices and revenues to fall.

“We’re in this cycle of record production,” Gary Schnitkey, an agricultural economist at the University of Illinois at Urbana-Champaign, told Bloomberg. “The only thing that will stop it is a yield drop in a major production area—Brazil, the U.S., the former Soviet Union. It has to come from somewhere.”

The agency said the U.S. farm-to-debt ratio will increase for a fourth straight year.