News

Record farm income projected for 2010

Looks like 2010 is going to be a record year for farm income. USDA’s Economic Research Service estimates net farm income of $81.6 billion in 2010, up 31 percent from 2009 and 26 percent higher than the 10-year average of $64.8 billion for 2000-2009.

Estimated net cash income at a record $92.5 billion, 2.3 percent above the prior record attained in 2008. Net value added is expected to increase by almost $20 billion in 2010 to $132.0 billion.

The value of livestock production in 2010 is expected to be up 16.6 percent compared to 2009 led by a 29.6 percent increase in dairy products, 16.4 percent improvement in meat and 9.9 percent increase in poultry and egg value. Crop production value is projected at 3.1 percent higher thanks to strong gains in corn, soybean and cotton receipts.

Expenses for purchased inputs are projected to be 2.5 percent higher this year after declining 6.4 percent in 2009. Quite a change from the 15.7 and 8.8 percent increases we saw in 2007 and 2008.

Government payments are expected to total $12.4 billion in 2010 reflecting a 1.5 percent increase over 2009. Commodity program payments are $2.3 billion lower but disaster assistance and other payments increased $2.5 billion this year.

The report also depicts the volatility we have seen in farm income over the past decade. For the years 2000 through 2009, net farm income increased in 6 of the years, posting an average increase of 26.6 percent. The other four years saw an average decline of 23.5 percent. Because net cash income reflects only cash receipts and expenses, it tends to be less volatile. In the 6 years when net cash income rose, the average increase was 10.4 percent. In years when net cash income decreased, the average decrease was 15.9 percent. (The “down” years were 2002, 2005, 2006 & 2009)

Read and overview from USDA here: