WATERMAN – Nick Kessler, site manager at Monsanto’s Waterman Research Facility, said 2014 was a record year for corn across the country.

“This past year there were the most bushels per acre produced in the history of farming, as far as I know,” he said. “2012 was a bad year, but 2013 and especially 2014 had really good production.”

The party’s over, though. This year won’t be a banner year for corn, as corn will be more expensive than soybeans for farmers to produce. Moreover, net income for farmers is expected to fall by almost 32 percent this year as corn and soybean prices remain low and expenses creep higher, according to a U.S. Department of Agriculture report released this month.

Farmers who own land with a low cost of production likely will still make a profit, while those who rent land at higher prices will struggle.

Those with high costs probably will try to cut household expenses, avoid making any large equipment purchases and try to cut costs for fertilizer and other inputs.

About 80 percent of Illinois cropland is not owned by the people who farm it, said Scott Newport, a farm business specialist in DeKalb for Illinois Valley FBFM.

If estimates from the U.S. Agriculture Department hold true, farmers in the United States would see income fall for a second year in a row.

Income fell 16 percent from 2013 to 2014. The report forecasts an almost 32 percent net income decline this year, to $73.6 billion from $108 billion. Farm income hit a record $129 billion in 2013.

At Monsanto, leaders are planning to produce less corn seed this year, Kessler said. Many farmers probably have leftover corn seed from last season, so they won’t need to buy as much, he said.

“The acres used for corn will go down, and we’ll use more of those acres for soybeans,” he said. “Farmers will plant more soybeans this year.”

Crop receipts are expected to fall nearly 8 percent, driven by a dramatic fall in grain prices.

Corn, for example, was at a record high, exceeding $8 a bushel in the summer of 2012, but is trading under $4 now. Soybeans saw a similar decline.

Livestock prices generally have been high, delivering exceptional profits – particularly for hog farmers – but a pig virus cut herds last year and cattle herds haven’t yet fully recovered from drought years when numbers declined.

Even as income falls, expenses for things like fertilizer and seed are rising by one-half of one percent, the USDA said.

“There will be some farmers that do face financial stress, that’s for sure, but there’s also going to be a tremendous amount of farm payments going out,” said Bruce Babcock, professor of economics at Iowa State University.

The USDA reports show government programs that pay farmers when commodity prices are low will rise 15 percent this year.

“It’s making it a tight squeeze for the grain farmer,” said Jerry Main, 76, who plants corn and soybeans on just under 500 acres in southeast Iowa. “There’s a lot of negotiating going on between tenants and landlords trying to get cash rents reduced. I’m not hearing landlords are giving too much yet.”

• The Associated Press and Daily Chronicle News Editor Jillian Duchnowski contributed to this report.