A year after one of the worst droughts on record, U.S. farm incomes are projected to rebound this year to their highest level in four decades because of a surge in corn and soybean inventories.
Net farm income this year is forecast at $131 billion, up 15% from $113.8 billion in 2012. Adjusted for inflation, the forecast would mark the highest since 1973, the U.S. Department of Agriculture said Tuesday in a report.
“Increases in the value of corn for grain, hay, soybeans, poultry, eggs, and milk are leading the overall increase in production values,” the USDA said. “Crops particularly benefited from large production increases that under historical marketing patterns will likely go into storage for sale in 2014.”
Expenses, however, continued to climb because of rising labor and rent costs.
Offsetting that is a potential record bumper crop of corn. U.S. farmers are expected to produce 14 billion bushels of the grain this year.
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