The USDA’s new farm income forecast for the year includes a surprise with lower projected production expenses. USDA’s Spiro Stefano from the USDA Economic Research Service notes that crop prices for farmers are declining, with a projected 12% drop in crop receipts.
However, production expenses have been revised downward for several inputs, including fertilizer, pesticides, and fuels, but some costs, such as labor, interest, and livestock, are still rising. The cost of labor, interest, and livestock purchases is still increasing. The USDA projects a 12% drop in crop receipts, but this is partially offset by a minimal 1% decrease in production.
The overall trend indicates a mixed picture, with some costs decreasing while others continue to rise.
