09/02/08 Farm income

American farmers are bringing in more income that most analysts predicted, including those experts from USDA who have just revised their February income projections. SALATHE "An increase of crop receipts of 15 billion from where they were in February. An increase in livestock receipts of seven billion dollars." USDA economist Larry Salathe says US net farm income this year should hit 96 billion, nine billion above last year. Salathe says there are some good reasons for that. SALATHE "Very strong exports. Very strong domestic demand of course supported by ethanol. We of course all know about the problems that farmers had with planting and the flooding in the Midwest and now some concerns about weather and some concerns about the wheat crop worldwide." On the negative side; farm expenses are up by a record amount. However, Salathe says the cash receipt increases have more than offset those higher input costs. SALATHE "Fertilizer expenses forecast to increase ten billion dollars in 2008, that's up 58 percent. Fuel expenses are forecast to increase five billion dollars. That's an increase of 39 percent." Add all production costs together and Salathe says US farmers will pay 40 billion dollars more this year than last and last year was a 20 billion dollar increase over 2006. Today's Idaho Ag News Bill Scott