According to a new forecast by the U.S Department of Agriculture (USDA), U.S, farm income will reach a 40-year high in 2013. The USDA’s Economic Research Service estimates net farm income of $131 billion for 2013 – up 15% from $113.8 billion in 2012 and exceeding a previous estimate of $120.6 billion. Once adjusted for inflation, 2013 net farm incomes are expected to be the highest since 1973. Cash crop receipts will fall 3% as some crops will not be completely sold by year-end. This 3% decline and increased expenses will be partially offset by an almost 6% increase in livestock receipts. Production expenses climbed 3% to $352 billion, however the pace of the increase in costs has slowed from 2012 and 2011. Farm equity is also expected to reach another record high as farm asset values will continue to exceed increases in debt. According to the USDA farmland values should continue to rise on the strength of commodity prices, low interest rates, and expectations of favorable net returns from the market and crop insurance.
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