U.S. farmers will see their net incomes drop in 2016 for the third consecutive year. The U.S. Department of Agriculture says weaker cash returns on livestock, poultry, and dairy farms will drive income down 17.2 percent to $66.9 billion this year. That forecast would be 46 percent lower than the record profits of $123.7 billion in 2013. An article on Dairy Herd dot com says if the forecast does pan out, that would be the lowest farm income level since 2009, signaling more pressure on the slumping farm economy.
The slump isn’t just hitting on-the-farm producers, either. The weakened Ag economy is triggering cost-cutting measures and job layoffs at major farm input suppliers like Monsanto and John Deere, which have both lowered revenue forecasts for 2016.
Meat processor Tyson Foods reported a steep drop in revenues over the last month and sees lower revenue numbers ahead in 2017. Cash receipts in dairy, beef, poultry, and eggs are projected to fall 12 percent to the lowest levels since 2011. Row crop receipts are forecast unchanged as stronger revenues for soybeans and cotton offset lower prices for corn and vegetables.