Grassley Says Overproduction Causing Farm Income Decline

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In its recent report on farm income, USDA expects farm profitability to dip this year by 32 percent from the last estimate.

Net farm income is now projected at about $73 billion in 2015, well below the $108 billion forecast last year.

USDA cites lower crop and livestock prices as main drivers behind lower farm income, with production expenses marginally higher and government payments expected to increase 15 percent.

In a conference call with reporters earlier this week, Iowa Senator Chuck Grassley was pessimistic about the numbers.

He says, “They didn’t look any further ahead, but as long as we keep overproducing, and there’s questions about the expansion of ethanol, and the fact that exports are down, I think you can even see it continuing beyond 2015.”

Grassley says it’s not hard to believe the numbers, given the current farming environment, though he does expect income will eventually rise.

“Prices will go back up,” Grassley says, “but now, at New Hartford and Shell Rock, where we sell our grain, you know, probably corn is 75 cents to a dollar below the cost of production, and that’s what’s typical of the 32 percent reduction in income “

Farming in Iowa, with just over seven percent of total U.S. farm receipts, is projected to be a $35.5 billion industry in the coming year.

4 comments

  • Fed UP

    Also the Syngenta mess with them adding a nontested glysophate on corn seed that the Chinese refused to use or buy which cost our exports bigtime. Big lawsuit against Syngenta on that right now.

    • bjertbjaeger

      Appears to be over GMO issues, not glysophate, but it still represents the level of greed and dishonesty in the ag industry.

      The sad thing is, we shouldn’t even be selling corn or anything else to China, they’re not an ally, they have spied on us, attacked our networks and funded enemy actions against the US, they even currently are protecting a chinese citizen whop needs to be extradited to face murder charges, but our governor puts his pals profits over even justice.

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