Farm sector profitability down for third consecutive year

Production costs are down, which is softening blow of lower commodity prices.

Farm sector profitability is projected to decline for the third straight year. Net cash farm income for 2016 is forecasted to be $94.1 billion, down 13.3% from the 2015 estimate. Net farm income is forecasted to be $71.5 billion in 2016, down 11.5%. If realized, 2016 net farm income would be the lowest since 2009.

Cash receipts are expected to fall $25.7 billion (6.8%) in 2016, led by an $18.7 billion (9.8%) drop in animal/animal product receipts and a $7.1 billion (3.7%) decline i

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