John Maday is reporting for Drovers online that the US Department of Agriculture (USDA) predicts that 2009 farm incomes will be “significantly” smaller than 2008 income levels.While this information became available today in the release of the USDA’s 2009 Farm Income Forecast report, the information is likely not news to those involved in the agriculture industry. Drover’s reports that the report projects net 2009 farm income to be $57 billion, which is a 34.5 percent decline, or a $30 billion drop from 2008.
However, Maday notes it is important to put these numbers in perspective. 2008 was generally a very good year with strong prices for both crops and livestock. This year has seen those prices drop amid the global recession. While input costs are projected to be lower than in 2008, the drop in gross income far exceeds the production costs by $30 billion.
When taken out the full ten years, this year’s projection is $6.5 billion less than last year’s ten year projection. If 2009 incomes do reach what is predicted, “this would be the eighth-best year for incomes in U.S. farming. The top five earnings years, the report notes, were between 2003 and 2008, attesting to the profitability of farming this decade.”
Since many farms generate off-farm income, the drop in actual household 2009 income is 3.5 percent.
For more information from the USDA on this report, click here.
To read the Drovers article click here.
Posted: 11/24/09
