The agency is projecting milk cash receipts will decline 35% in 2009. Milk prices are expected to start a slow recovery later in the year, as more cows are culled. Overall net farm income for all farms is expected to decline 20%.
On the plus side, fuel and oil costs are also expected to decline 33% this year. Fertilizer will also be down, perhaps 12%, and pesticides down nearly 7%. Seed costs are expected to climb 3%.