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Monday, December 28, 2015

2016: Net incomes to fall after ‘golden age of ag’ - AgriNews

2016: Net incomes to fall after ‘golden age of ag’ - AgriNews: History has shown the peaks and valleys of farm income and projections through 2016 are comparable to those valleys farmers faced from 1998 through 2002 with low commodity prices.

As with previous periods of low income, cost control and working capital management will be key to financial stability, said Gary Schnitkey, University of Illinois agricultural economist and farm management specialist, at the Farm Economics Summit.

Using average corn price projections of $3.65 per bushel in 2015 and $3.85 in 2016 and soybean prices of $8.90 each year, combined with lower corn yields and stable soybean yields, Schnitkey projects 2015 net income in the $20,000 to $30,000 range in 2015 and 2016.

The net income in 2014 for farms enrolled in Illinois Farm Business Farm Management was $104,000.