Farm Income To Drop 12.5%

USDA's first forecast of 2005 farm income pegs net income at $64.4 billion, down $9.2 billion or 12.5% from the record $73.6 billion estimated for 2004. The forecast was higher than many financial analysts had expected, according to Richard Brock, The Brock Report.

At the forecast level, annual farm income would still be the second highest on record. Forecast income for 2005 suffers in comparison to 2004, mainly because of the abnormally large $14.4 billion surge in income generated by exceptionally favorable market and/or crop conditions last year, Brock says.