Gross income for farmers this year, also called cash receipts by USDA, are expected to decline seven percent in 2014 on all crops, the second annual decrease following a record high in 2012.
Even with record corn production projected, cash receipts for corn are expected to decline by over 20%, with the annual average price of corn down 32%. Declines in receipts are also expected for most other major crops including soybeans, as well as fruits and nuts, wheat, and vegetables.
Conversely, record livestock prices are projected to drive a 15% increase in livestock cash receipts. Despite expected declines in beef production, cattle and calf receipts are expected to set a record in 2014 due to higher prices. Hog production is also expected to decline, but higher expected annual average prices drive the forecast increase in hog cash receipts.