OMAHA, Neb. (AP) — The Federal Reserve predicts U.S. farm income
could decline in 2013, but it depends upon how long the drought
continues. Roughly two-thirds of the nation has been in a severe
drought since last summer. The Federal Reserve Bank of Kansas
City, Mo., said Thursday that if it continues, prices of corn
and other crops would remain volatile because of tight supplies.
But if normal weather conditions return, crop prices would
decline and lead to lower farm incomes. The USDA predicted net
farm income in 2012 would reach $114 billion because of the
combination of high crop prices and significant crop insurance
payments because of the drought. That total would be the third-
highest farm income on record even though it's 5 percent lower
than the previous year. The Federal Reserve's report looks at
numerous factors that will influence farmers' financial health
and how much farmers will make in 2013. The consequences of the
drought go beyond dollars and cents. Many farmers have said they
would prefer to