LOUISVILLE, Ky. (AP) – After a period of record cash receipts, Kentucky farmers are feeling the squeeze from lower commodity prices and sluggish exports.
University of Kentucky ag economists predicted Thursday that statewide farm cash receipts will drop to $6 billion in 2015. That would be down 8 percent from last year’s record $6.5 billion. Crop receipts are expected to decline 16 percent and livestock receipts are forecast to be down 3 percent.
The economists say Kentucky’s net cash farm income – the amount left after expenses – will likely drop below $2 billion in 2015. They say next year’s amount looks to approach the $1.4 billion average early in the decade.
The state’s net farm cash income peaked at $2.75 billion in 2013.
Another factor behind lower receipts is the end of tobacco buyout payments.
Copyright 2015 The Associated Press.