Milk production is expected to increase by 3 percent. Milk prices, which many had feared would be most affected by the drought, are predicted to drop. The citrus crop should return to near normal levels as favorable weather in California is helping citrus growers recover from last winter's devastating freeze. The forecast for farm incomes is not very rosy. Abundant harvests coupled with weak exports have kept farm prices for some crops from rising and have resulted in decreased prices for other crops.
Some farmers face depleted crops due to the drought and constant or lowered prices.
For consumers, the good news of little inflation for agricultural commodities must be tempered somewhat by the likely increase in tax payments to help farmers. The drought in the Eastern U.S. was supposed to have significantly reduced crop production.