Farm income is forecast to decline modestly in 2016 and 2017, mostly due to lower livestock prices resulting from increased meat production in the U. S. Net Cash Income is forecast to decline to $14.8 billion in 2016, 2 per cent below 2015 levels, and to fall by a further 7 per cent to $13.8 billion in 2017. [...] Total direct program payments to producers (see first chart on page 7) will increase by 24 per cent in 2016 and by another 22 per cent in 2017 and this is expected to offset part of the decline in market receipts. [...] Poultry and egg receipts are expected to climb 3 per 0 Grains and Cattle Hogs All Farms cent to reach $3.9 billion in 2016 and by a Oilseeds further 3 per cent in 2017, mostly due to higher demand. [...] While macroeconomic conditions are expected to be generally stable in 2016 and 2017, risks include a sudden rise in the price of oil and/or the value of the Canadian dollar that could increase farm expenses and/or the have a negative impact on the prices received by Canadian farmers.