DES MOINES, Iowa – Net income for U.S. farmers is expected to fall by nearly 32 percent this year because of low crop prices and increasing expenses, placing many farmers in an unprofitable situation.
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The U.S. Department of Agriculture released estimates on Tuesday that show 2015 is expected to be the second year in a row that farmers will see their income fall. Income was down 16 percent from 2013 to 2014.
The report estimates net farm income will be $73.6 billion in 2015, down from $108 billion in 2014. It was at a record $129 billion in 2013.
The report also anticipates that as income falls, expenses will increase by one-half percent.
Government programs that pay farmers when commodity prices are low are expected to increase 15 percent this year.