USDA forecasts 31% increase in net farm income
Farm and Ranch September 1, 2011 Total U.S. net farm income is forecast at 103.6 billion dollars for 2011, up over 24 billion from last year for an increase of 31 percent. That’s is the latest forecast from USDA’s Economic Research Service issued this week. Both net farm income and net cash income are projected to exceed 100-billion dollars for the first time. The 2011 forecast of net farm income is the second highest inflation-adjusted value recorded since 1973. USDA chief economist Joe Glauber says farm expenses are also up in 2011, up over 11 percent from 2010 and exceed 300 billion dollars for the first time. Glauber: “Feed costs are up about 20%. That goes hand in hand with corn, wheat and soybean prices. And then fuel and fertilizer prices are up almost 24%. So we have seen those increases in oil prices that translate into higher diesel prices, higher gasoline prices and also fertilizer prices.” But Glauber is quick to point out that the balance sheet for 2011 looks mostly good for ag producers based on USDA reports. Glauber: “Looking over the year, and looking across most commodities, certainly expenses are up but receipts have increased more.” Additionally USDA says farm sector debt is down almost two percent from last year with the debt-to-asset ratio forecasted to match an historical low set in 2007 at 10.4 percent I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on Northwest Aginfo Net. ?
