Farm economic update

Farm economic update

David Sparks Ph.D.
David Sparks Ph.D.
The latest complete trade figures we have are for the first 10 months of this fiscal year, October through July, and looking at the 147 and a half billion dollars worth of ag exports so far, it appears that we are: Well On track to meet the projections for fiscal year 21. Which now call for total exports to hit 173 and a half billion dollars. This from Agriculture Department economist and trade tracker Bart Kenar. Then with two months of data left to come in, the U.S. would have to average about 13 billion dollars of export sales a month. And for each of the last two months, exports have been right around 13 billion. A lot of the export value increases over the last year coming from higher prices for many commodities. But Kenar says the icing on the trade cake is that: Even with increased prices, the volume is increasing as well. Export volumes of bulk products, 38 percent larger than a year ago. So foreign customers are not shying away from higher prices.

Farmers this year will take in 18 percent more in cash receipts than they did in 2020, at 421 and a half billion dollars, net cash income could grow by 21 and a half percent. That growth might have been even larger, but farmers have been seeing a substantial hike in production expenses. In fact… there are very few things where production expenses are actually lower in 2021. USDA’s chief economist Seth Meyer.

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