Net farm income is forecast at $113.2 billion in 2014, down about 14% from the 2013 forecast of $131.3 billion. If realized, the 2014 forecast would be the fourth-highest value since 1970 after adjusting for inflation.
Lower cash receipts for crops — and to a lesser degree, higher production expenses and reduced government farm payments — drive the expected drop in net farm income. Net cash income is forecast at $123 billion, down almost 6% from the 2013 forecast. Net cash income is projected to decline less than net farm income primarily because it reflects the sale of more than $10 billion in carryover stocks from 2013.
Despite expected record-setting harvests, crop receipts are expected to decrease more than 7% in 2014 due to lower prices. Livestock receipts are forecast to increase by more than 15% in 2014, largely due to higher prices.