Yesterday, the USDA Economic Research Service (ERS) released the Farm Income and Costs report, which stated: "Net farm income is forecast at $103.6 billion for 2011, up $24.5 billion for a rise of 31 percent from 2010. Net farm income reflects income from production in the current year, whether or not sold within the calendar year, and is a measure of the increase in wealth from production."
The report also pointed out that, "Crop receipts are expected to rise over 19 percent in 2011 as large increases are expected across a number of crop categories. Livestock receipts are expected to rise nearly 16 percent, led by strong sales of dairy, meat animals, and turkeys. Many different crop and livestock categories are expected to acheive record high sales."
"Feed crop receipts are expected to increase almost 37 percent, acheiving a record level in 2011. Sales of corn or grain, which are expected to account for almost 86 percent of 2011 feed crop receipts, are expected to increase over 38 percent in 2011. While the quantity of corn sold in 2011 is expected to decline less that 5 percent, this will be more than offset by an almost $2-per-bushel increase in price. Corn exports are suffering as rising U.S. corn prices have made feed-quality wheat, a substitute, more competitive. Tight U.S. corn supplies, due largely to a drought in Southern-producing States, have hurt U.S. corn exports."
To view the 2011 Farm Sector Income Forecast, click here.
Posted 8/31/2011
