Net farm indicators

Net farm indicators

David Sparks Ph.D.
David Sparks Ph.D.
Are the indicators of financial stress in the farm sector showing an improved situation or just the opposite? Over the last several months what we have primarily been reporting, as it relates to the economic outlook for farms has been bleak. Lets take an in-depth look. If you just look at the farms in this country for which farming activities are the only real source of income, the mostly intermediate and large commercial farm businesses, If you look at their average net farm income for this year… “We've seen across the board increases for all the crop categories.” Livestock too, and USDA chief economist Rob Johansson says the increase averaged among all these farms is going to be about 19.5%. Net incomes are going to top last year for corn, soybeans and specialty crops. The biggest jump is for the average wheat farm.

“Net farm income up 32 percent.”

And all the livestock side, except for poultry…” increases across the board, the largest increases being for dairy”. Incomes for the intermediate and large dairy businesses expected to top last year by 44 percent, cattle eight%. Only poultry showing a decline from a year ago, down 9 1/2%, mostly because of a 10 % drop in broiler prices. But most other enterprises making more money this year. That's mostly, he says, due to a boost in government payments and crop insurance indemnities.

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