In a revised forecast, the USDA’s Economic Research Service predicts that 2007 net farm income will set a new record at $87.1 billion. Profits, however, will be limited by production costs that are averaging 8.5 percent higher than those in 2006. Economists attribute much of the increase in farm income to higher grain prices, but the agency projects livestock cash receipts will increase 17.5 percent from last year due to higher meat and dairy prices.