Net U.S. farm income for 2014 is expected by the U.S. Department of Agriculture (USDA) to be $113.2 billion – a 13.8% drop from last year and the lowest since 2010, but still $17.4 billion above the USDA’s income estimate released in February. Last year’s income of $131.3 billion was the highest on an inflation-adjusted basis in 40 years, and even considering the drop, this year’s income will be $25 billion above the previous 10-year average. The boost to the USDA’s income estimate is mainly due to record high prices for livestock, dairy and poultry products. The livestock sector in particular will see a 15.3% increase in earnings this year, reaching $209.6 billion, exceeding receipts of arable farmland and up from a previous forecast of $183.4 billion on a 20% increase in cattle prices. The department also amended its previous prediction that the value of crop production will decline to 2011 levels, raising its forecast for crop receipts by $11.5 billion to $200.9 billion.
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