Farm sector profitability is forecast to decline for the third straight year. Net cash farm income for 2016 is forecast at $94.1 billion, down 13.3 percent from the 2015 estimate. Net farm income is forecast to be $71.5 billion in 2016, down 11.5 percent. If realized, 2016 net farm income would be the lowest since 2009.
Cash receipts are forecast to fall $25.7 billion (6.8 percent) in 2016, led by an $18.7-billion (9.8 percent) drop in animal/animal product receipts and a $7.1-billion (3.7 percent) decline in crop receipts. Nearly all major animal specialties—including dairy, meat animals, and poultry/eggs— are forecast to have lower receipts, as are feed crops and vegetables/melons, down $3.2 billion (5.5 percent) and $1.5 billion (7.5 percent), respectively. Direct government farm program payments are projected to rise $2.7 billion (24.8 percent) to $13.5 billion in 2016, in part due to the expected price environment.
Farm asset values are forecast to decline by 2.2 percent in 2016, and farm debt is forecast to decrease by 0.8 percent. Farm sector equity, the net measure of assets and debt, is forecast down by $61.2 billion (2.4 percent) in 2016. The decline in assets reflects a 1.5-percent drop in the value of farm real estate, as well as declines in animal/animal product inventories, financial assets, and machinery/vehicles. The decline in farm debt is driven by lower nonreal estate debt (down 4.6 percent), reflecting a change in farmers’ management decisions (such as reducing input expenditures) but also an increase in short-term commercial bank loan rates, which make debt more expensive.
Source: USDA
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"Tweeting Growers"
Top 5 -yesterday
- Heritage Farms' new greenhouses enter second season, with new growers?
- Pure Harvest to build more indoor farms in Saudi Arabia
- Why irrigation and nutrients should be well distributed in substrate bags
- A more natural form of artificial lighting with an LED pulse technology system
- Paper packaging solution now also available as banderole
Top 5 -last week
- Combining vertical farming and greenhouse horticulture to decentralize lettuce production
- Fresh produce chain hit by Lakeside Produce’s bankruptcy
- Growy acquires assets and team of Kalera International (&ever)
- Positive vibes on the first day of IPM '23
- CAN: Land Betterment acquires 50% ownership in greenhouse operations
Top 5 -last month
- How farmers are cutting out supermarkets
- Combining vertical farming and greenhouse horticulture to decentralize lettuce production
- Higher light transmission and lower heat demand with double foil greenhouse
- Fresh produce chain hit by Lakeside Produce’s bankruptcy
- 30MHz declared bankrupt, curator 'optimistic about restart'
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Other news in this sector:
- 2023-01-31 Teaching self-sustainability to schools and communities across South Africa
- 2023-01-31 Mint is seeing an interesting pickup in demand
- 2023-01-31 Cucumber season expected to end two to three weeks earlier
- 2023-01-31 Rising temperature complicates the flowering of peppers in Morocco
- 2023-01-31 France is preparing a law allowing the industry to better negotiate with retailers
- 2023-01-31 Spanish zucchini exports decrease by almost 22% while purchases of Moroccan zucchini increased by more than 33%
- 2023-01-31 UK: Plans for more soft fruit polytunnels at a Colworth farm are resubmitted
- 2023-01-31 More than 5,000 tons of tomato arrived in Russia from Turkmenistan since the start of '23
- 2023-01-31 Despite challenging 2022, Serbian fruit exports are increasing
- 2023-01-30 French imported lettuce price rises slightly
- 2023-01-30 Cultivating urban farming in Malaysia
- 2023-01-27 Italy exports approximately 60% of its tomatoes to the US every year
- 2023-01-27 New white strawberry variety targets year-round supply
- 2023-01-27 Higher cucumber pricing reflects lessened supply and inflated costs
- 2023-01-27 Greenhouse horticulture goes for people-oriented employment
- 2023-01-27 Sub-zero frosts harm Murcia crops
- 2023-01-27 Increased energy costs hit winter production of cucumbers on the northern hemisphere hard
- 2023-01-26 UK cucumber growers won't plant until late February or March
- 2023-01-26 South African consumer has to expect higher-priced tomatoes in near future
- 2023-01-26 Morocco approaches the volume of tomatoes that Spain sold in the European Union
