By Brent Gloy and David Widmar
As we discussed last week, U.S. farm income has declined dramatically over the last two years. The magnitude of the drop has been substantial. In real (2009) dollars, the fall from 2013 to 2014 and 2014 to 2015 are the largest absolute declines since 1979 to 1980. In percentage terms, the 2014 to 2015 decline is the largest since 1982-1983.
We thought it would be worthwhile to examine the decline in further detail. As we mentioned last week, persistently high and increasing expenses have played a key role in the decline. We will look at how expenses have changed throughout previous downturns in a later post. For this week’s post we wanted to look at something that hasn’t gone up in this downturn, direct government program payments. Continue reading