<p style="text-indent:0px; line-height:12px;"><span style="font-weight:bold;">Washington D.C.-</span><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">By ANUK Staff<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">2.28.13</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><img src="https://cdn.andnowuknow.com/legacyWriterImages/usda022713laborprices.jpg" alt="Images022713" /><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">The USDA’s economic projections for 2013 forecast farm production expenses of over $19 billion, including a rise in labor cost over 10% and a rental expense increase of roughly 12 %.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><img src="https://cdn.andnowuknow.com/legacyWriterImages/usda022713laborpricesbody1.jpg" alt="Images022713" /><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Kevin Patrick, Agricultural Economist with the USDA Economic Research Service presented at the USDA’s 2013 Agricultural Outlook Forum, noting that farm labor costs are estimated to rise by 10.8% in fiscal 2013, caused by increasing wage rates.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Output for labor-intensive crops including fruits and vegetables is expected to rise by 7.6% and will also contribute to surging costs. Rising property values are also pushing rental prices upwards.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Additionally, cost increases are expected to outpace receipts leading to lower average net cash income for all crop farm businesses in 2013.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Net farm income is forecast to reach $128.2 billion, buoyed by high agricultural exports. The figure would be the highest since 1973.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">The total net cash income, a figure measuring the difference between cash expenses and the combination of commodities sold during the calendar year plus other sources of farm income - in 2013 is forecast to hit $123.5 billion, down almost 9% from 2012.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Patrick said that this would be the first time net cash income will fall below farm income since 2004.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">On the bright side, net cash income forecast is up for the Eastern Uplands, Prairie Gateway, Northern Great Plains, and Basin and Range for 2013 when compared with 2009 to 2012 figures. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.usda.gov/oce/forum/presentations/Patrick.pdf" target="_new">USDA</a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
