The University of Missouri’s Food and Ag Policy Research Institute (FAPRI) says Missouri net farm income could increase in 2011 to help the state’s economic recovery. FAPRI’s Scott Brown is optimistic about the 2011 economic year.

“It’s certainly a situation where Missouri farm income could exceed three billion dollars in 2011 and potentially break an all-time record.” 

FAPRI predicts planted areas for row crops will increase to a total of about 14 million acres in 2011. That’s only happened twice in the last 25 years. 

 Although crops are expected to recover, Brown says producers need to be aware that high feed prices could constrain the growth of the livestock sector and prices paid for meat will increase.

 “Certainly the dairy industry prices have been slow to recover, both to Missouri as well as the rest of the country. We have seen some better times for hog producers in 2010. We hope that we’ll carry some of that into 2011, but just as we talk about higher crop prices we are talking about higher feed costs.”

He gives some advice to farmers for 2011.

 “Producers need to develop marketing plans that try to minimize volatility as best they can, which is not an easy task to accomplish, but very important for those producers that want to remain viable for the long-term.”

FAPRI also predicts producers will see prices offset high input costs as foreign growth expands.