2016 Net Farm Income Projections Under Different Price Scenarios04/28/2016
Recent increases in corn and soybean prices have cast a more optimistic light on the potential for higher 2016 incomes. In this article, net incomes for different price scenarios are examined given that yields are at their expected levels. Even given recent increases, prices near current fall delivery bids will result in working capital deterioration on many farms. Given expected yields, prices need to be above $4.20 for corn and $10.25 for soybeans before working capital stabilizes on typical grain farms. Again all of these projections are made using expected yields. A key period for understanding 2016 net income levels will occur in August 2016 when a clearer picture of yields and prices emerges.