Farm profits to fall second consecutive year
DES MOINES, Iowa (AP) --
The U.S. Department of Agriculture says it will be a less profitable year for farmers as low grain, milk and hog prices cut into income.
The abundance of grain leftover from last year's crop and this year's anticipated harvest of the third-largest corn crop and second-largest soybean crop on record have kept prices below the cost of production.
The USDA said in a report Tuesday net farm income is expected to decline 36 percent to $58.3 billion, the lowest in nine years.
Iowa State University agricultural economist Chad Hart says farmers are using savings to get by.
Others are borrowing more, but while farm debt is rising, the USDA says it is not yet at worrisome levels.