2012 Farm Income Forecast Not as Encouraging for the Livestock Sector

2012 Farm Income Forecast Not As Encouraging for Livestock Sector

I’m KayDee Gilkey with today’s Open Range.

USDA released its 2012 Farm Income Forecast earlier this week. Net farm income is forecasted to decline almost $4 billion from its all-time high in 2011-- a 3 percent decline. Net cash income is expected to decline almost $2 billion.

Despite the drought that grips much of the Mid-west, and although overall the net income is down, many grain and oilseed farmers’ income were up from last year. The decline reflects the troubles that the livestock and dairy industries have been experiencing as USDA Secretary Tom Vilsack shares.

Vilsack: “Certainly the livestock and the dairy industry have had a difficult period of time with higher feed costs and a lack of support because we don’t have a comprehensive Food, Farm and Jobs Bill and there isn’t the kind of disaster assistance that was available to crop producers. But nevertheless, Congress still has the capacity to act, and obviously any action that would encourage and increase disaster assistance would of course increase those numbers and make it a little bit easier for these livestock producers in particular to get through a tough time.”

Feed costs have increased 18 percent from 2011 or an increase of $10 billion forecasted for this year.