Falling Farm Income Leading to Lower Revenue Projections

DES MOINES, Iowa (AP) – A panel of state budget experts has lowered Iowa revenue projections for the current fiscal year and next year.

Citing falling farm income resulting from lower corn and soybean prices, the Revenue Estimating Conference on Thursday predicted the state will take in about $7.04 billion for the fiscal year that began July 1. That’s nearly $9 million less than the group’s estimate in October.

Department of Management director David Roederer says state economic growth is slowing after several years of faster growth, fueled by high commodity prices that caused rising farm incomes.

For next year, the group says state revenue is likely to grow 4 percent to $7.33 billion. That’s about $21 million less than earlier projections.

The governor will use the numbers to craft the next state budget.