The Rising Influence of Rising Affluence

[DewDiligence]

USDA forecasts record crop output—further farm-income decline:

http://www.wsj.com/articles/corn-and-soybeans-slide-as-usda-forecasts-record-production-1471020435

The Agriculture Department on Friday predicted domestic farmers this autumn will harvest a record 15.2 billion bushels of corn and 4.1 billion bushels of soybeans… The updated production figures surprised grain analysts who had expected recent hot weather would limit yield increases.

…Farmers have tried to plant their way out of a three-year slump in incomes ashigher production helped boost world inventories and depressed prices, and industry advocates warned the impact could be dire [no kidding].

… The USDA estimates U.S. farm incomes will fall to $54.8 billion in 2016, the lowest level since 2002.

The projected $54.8B in 2016 is down 3% from 2015 and down a whopping 56% from the all-time high in 2013.