27 Aug 2015

Decade-low slump in US farm incomes

9:00 am on 27 August 2015

The United States Department of Agriculture is forecasting a 36-percent drop in U.S. farm incomes this year to the lowest level in nearly a decade.

The reduction comes off the back of historically high farm incomes in 2013.

The USDA said the plunge in incomes reflected a continued decline in crop prices and weakness in the dairy market.

It said dairy incomes were expected to drop by nearly a third due to falling milk prices.

The USDA said corn and soybean growers were expected to produce large harvests again this year, which will keep prices depressed in the cropping sector.

US secretary of agriculture Tom Vilsack said despite farm income forecast to be down from record levels, rural America continued to remain stable and resilient.