Farm Net Income Expected to Be Lower in 2013

Looks like net cash income for the farm sector this year will be less than was forecasted as the beginning of the year. USDA Chief Economist Joe Glauber says Glauber: "Largely reflecting the fact that we have lower crop prices and payments." In February net cash income was forecasted to be $128 billion new forecast is $120.8 billion, six percent lower than 2012. The decline coming from mostly the crop side as Glauber explains. Glauber: "The price decline is because of the much larger crop expected are going to more than offset the increased volume and so the actual receipts will fall. Crop receipts are forecast at $211 billion compared to $220 almost $224 billion last year. Livestock receipts up at $180 billion relative to $172 billion or so last year that certainly is reflective of the fact that beef prices have been up. For a lot of the animal product prices have been higher in 2013." Farmers are also looking at higher expenses as well in 2013. Glauber says Glauber: "Total expenses for 2013 are up by almost $13 billion. They are estimated at $318 billion for this year, compared to almost $305 billion last year. Expenses have been going up every year, these last two years." The value of farm assets are expected to grow even more so there should be a record high for farm equity.