The U-S Department of Agriculture is forecasting a fairly large drop in overall farm income for 2014. Chief Economist Joe Glauber says net cash income for farmers is expected to drop 22% from 2013 numbers. Net farm income is expected to drop 26.6%.
USDA also reports part of the reason for the drop is due to changes in the Farm Bill. Farmers will not receive direct payments and safety net payment guidelines in the new Farm Bill won’t be made (if needed) until 2015.
Real estate values will still increase a bit but not at the levels we’ve seen over the past few years. The increase in real estate for 2014 is projected at 3%.