Farm income to sink even more than expected, USDA says

USDA says that an already grim financial picture in the farm sector has actually gotten worse and will continue to do so. In its November update of its farm sector income forecast, USDA's Economic Research Service predicts a drop in farm income for the third consecutive year.  Net cash farm income is forecast at $90.1 billion, down 14.6 percent from 2015, and down from $94.1 billion seen in August. Net farm income, meanwhile, is seen at $66.9 billion, a 17.2 percent drop from last year. The decreases come after the sector set record highs for farm income in 2012 and 2013.  The animal ag sector is perhaps playing the biggest role in the decrease. Crop receipt forecasts are essentially unchanged, but animal and animal products receipts are forecast to drop $23.4 billion, about 12.3 percent, in 2016. Some slight relief looks to be headed to producers as production expenses are predicted to fall while government payments increase. Those payments are seen rising by $2.1 billion, or just over 19 percent in 2016, pushed by a whopping 159.6 percent jump in payments under the Price Loss Coverage program and a 35.7 percent increase in the Agricultural Risk Coverage program.