U.S. farm income is expected to fall nearly 14 percent in 2014—the lowest in four years—as expectations for record corn and soybean crops have pushed commodity prices to their lowest point in many years.
The U.S. Department of Agriculture (USDA) expects net farm income to be $113 this year, down from $131 billion last year.
The USDA’s latest forecast marks a sharp upward revision from February’s initial forecast when the federal government predicted farm income to decline by 27 percent. The change reflects a stronger increase in the profitability of the livestock sector, where farmers are benefiting from record prices for beef and pork, while feed prices remain low, according to the Wall Street Journal.
Projected annual value of U.S. crop production is expected to slip nearly 11 percent this year, including a drop of $12.8 billion in corn receipts.
A 4 percent rise is expected in production expenses for farmers, marking the fifth consecutive year of increased costs.