University of Kentucky agricultural economists say the state's net farm income could drop to its lowest level since 2010.
They're pointing to sharply lower cattle prices along with large grain stockpiles and the lowest tobacco receipts of the post-tobacco buyout era as factors behind the decline in farm income. On the positive side, they say poultry receipts are back on track.
UK ag economist Will Snell said Thursday that Kentucky's net farm income — the amount left after expenses — is expected to drop below $1.5 billion in 2016, down from $1.7 billion in 2015. It's well off the peak of nearly $3 billion in 2013.
Agricultural cash receipts in 2016 are projected to drop 7 percent to $5.4 billion, down from a record high of $6.5 billion in 2014.