February 12, 2015
US farmers'incomesseen to slump32% due to low corn, soybean prices
Low corn and soybean prices, and rising costs are expected to drag down the net incomesof US farmers by as much as 32% this year, according to the USDA.
Corn, which exceeded US$8/bushel in summer 2012, is currently trading at under $4.
Soybeanprices have also declined from nearly US$18/bushel to belowUS$10.
With a significant drop in grain prices, crop receipts could slump by nearly 8%.
Based on estimates by the Agriculture Department, there would be a decline in total income for the second consecutive year, down to $73.6 million in 2015 compared with $108 billion in 2014.
Incomes fell 16%in 2014 from$129 billion in 2013.
In the meantime, livestock prices are reported to be high, thus producing favourable profits. Also on the rise are the costs of fertilisers and seeds which rose by one-half of a percent, according to the USDA.
Government financial aid, which is given to farmers during periods of low commodity prices, may increase 15% this year, said the USDA.