USDA predicts net U.S. farm income will drop 38 percent this year to $55.9 billion. That would be the lowest level in more than a decade, reflecting lower crop prices and softening dairy and hog markets. SDSU Ag Economist Matt Diersen says dairy and pork producers who saw strong income in 2014 may need to hold off on expansion this year due to lower prices.

Also driving lower net farm income is a projected 8.7-percent decline in crop receipts due to large corn and soybean crops. However, Diersen advises grain producers not to cut back on their inputs to try to save money.

He says higher interest rates and slightly higher debt levels showed up in the USDA report and producers will need to manage for that in regards to capital purchases.

Diersen says overall the effects of the projected drop in farm income varies depending upon which commodity you’re talking about.