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Farm income levels projected to fall yet again

Farm income is predicted to decline nationally for the third-consecutive year and could fall to its lowest level since 2009.

That sobering news was delivered by Agriculture Commissioner Dave Frederickson to a joint meeting Tuesday of the House agriculture policy and finance committees. Frederickson was on hand to provide members a broad overview his agency’s work.

Commissioner Dave Frederickson presents an overview of the Department of Agriculture to a joint meeting of the House Agriculture Finance and Agriculture Policy committees Jan. 17. Photo by Andrew VonBank

”Prices are obviously the main factor for this decline,” Frederickson said.

The U.S. Department of Agriculture forecasts total cash receipts to fall by 7 percent in 2016, led by a 10 percent drop in livestock receipts and a 4 percent drop in crop receipts. All major animal products – dairy, beef/pork, and poultry/eggs – are forecast to decline in cash receipts, as are feed crops, Frederickson said.

The commissioner did offer a piece of good news: farmers’ production costs were forecast to be down for the second year in a row, and 3 percent less than 2015. The declines in those input costs were led by savings in feed, seed and fuel expenses, which Frederickson said would help offset the impact of falling prices.

“Farmers survived the ‘80s; I’m sure we’re going to survive this downturn in the economy,” Frederickson said.

With an annual budget of approximately $116 million and 450 employees, the Department of Agriculture oversees what the commissioner called “an economic cornerstone” of Minnesota.

Frederickson told the committee agriculture in the state generates $90 billion in economic activity and supports 340,000 jobs. Minnesota leads the nation in production of turkeys, sugarbeets and processed sweet corn and is second in hogs and wild rice.  


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