Economists are forecasting Nebraska’s farm income to drop close to 45 percent this year. The report was put out by the Bureau of Business research at the University of Nebraska Lincoln. U-N-L Extension Public Policy Specialist Dr. Brad Lubben says while the drop is substantial from 2013 to this year, farmers had seen record income levels prior to that.

The drop is due to lower crop prices and reduced government payments. Lubben says despite that the state of the ag economy is generally good.

Lubben says the challenge for farmers going forward will be to increase their management skills and pay close attention to their bottom line.

Lubben says while producers had been enjoying higher prices, the input costs have been higher as well as the land values which will present a challenge going forward.