Farmers are continuing to trim production expenses in response to a third straight year of falling farm income, the U.S. Department of Agriculture (USDA) said last week in its farm income forecast.

Production expenses this year are forecast to be $10.1 billion lower than 2015, a decline of 2.8 percent. Expenses are lower for the second year in a row, led by declines in fuel and inputs, such as feed, fertilizer and seed, the USDA said.

With falling commodity...