According to the Ohio Ag Net in a precursor to the USDA Outlook Forum, USDA reported Tuesday net farm
income is projected to fall 8.7 percent in 2017 to $62.3 billion, the lowest net farm income totals
since 2009.
If realized, this would mark the fourth consecutive year of declining net farm income after peaking at a
record high in 2013, USDA stated in its report.
The numbers look worse when adjusted for inflation. When inflation is factored in, USDA stated net farm
income in 2017 will be the lowest since 2002.
Breaking down by sector, USDA states cash receipts for dairy should see a bump up of $4.7 billion, or
13.7 percent higher than 2016 based on higher dairy prices.
That dairy increase, will be offset by lower cattle-calf receipts, which will fall by $4.5 billion, or
6.7 percent for the cattle sector.
The forecast for crops is largely unchanged. Wheat sees the biggest impact in absolute terms with a $1.4
billion decline in revenue, or 16.6 percent compared to 2016.
Direct government payments to farmers will be down about $500 million, or roughly 4 percent to $12.5
billion.
Total production expenses are expected to remain flat after two consecutive years of slight declines.
Feed, livestock and seed expenses are projected to decline 2.6 percent overall. Fertilizer expenses are
expected to fall 9.1 percent but fuel-oil expenses are going to rise by a projected 13.1 percent. Labor
costs are also expected to increase 5.4 percent this year as well.
Farm assets are also forecast to dip by 1.1 percent this year and farm debt is projected to increase 5.2
percent.