ERS Predicts Net Farm Income to Rise 24 Percent in 2010

USDA's Economic Research Service (ERS) announced that net farm income "is forecast to be $77.1 billion in 2010, up $14.9 billion (24 percent) from 2009."

ERS expects farm business equity "to rise by 3.5 percent, largely due to an expected 2.9-percent increase in the value of farm business real estate and a 4.2-percent decline in farm business debt.  The farm business sector's debt-to-asset ratio is expected to decline to 11.2 percent and debt-to-equity is expected to decline 12.6 percent in 2010, indicating an improvement in the farm sector's solvency."

Average farm family household income is also expected to rise by 5.8 percent in 2010 to $81,670.  "Both farm and off-farm income are forecast to be up in 2010, compared to 2009.  In 2010, the average family farm is forecast to receive 11.1 percent of its household income from farm sources, with the rest from earned and unearned off-farm income."

To read the ERS Farm Income Forecast, click here.
For more information, click here to visit the ERS Farm Income and Costs Briefing Room.

Posted: 08/31/2010