Date of this Version
Cornhusker Economics, June 22, 2016, agecon.unl.edu/cornhuskereconomics
As commodity prices have fallen substantially since 2012, crop revenue and farm income have suffered. To illustrate, the national marketing year average price for corn has fallen from a record high of $6.89 per bushel in the 2012/2013 marketing year to a projected $3.50 per bushel for the 2016/2017 marketing year, based on supply and demand estimates published by USDA in June. With similar price weakness across other crops, the impact on crop revenue and farm income has been dramatic. U.S. net farm income is projected to fall to $54.8 billion for 2016, more than 50% below the record $123.3 billion in 2013. Nebraska net farm income has fallen dramatically as well, although above-average yields and reduced feed costs for livestock producers in the past two years have helped buffer the fall thus far.