U.S. farm income will soar past $100 billion for the first time in 2011 following rising cash receipts for everything from corn, wheat and cotton to soybeans, a U.S. Department of Agriculture (USDA) report showed.
U.S. farm income is forecast at $103.6 billion for 2011, up $24.5 billion, or 31 percent from 2010. Much of the increase is the result of higher crop values, which are expected to rise by $33.6 billion.
"Many different crop and livestock categories are expected to achieve record high sales," said USDA. It forecast crop receipts to be 19 percent higher than in 2010 and livestock receipts to rise by nearly 16 percent.
Volatile energy prices will make their way to the bottomline of U.S. farmers with total expenses forecast to increase by $32.5 billion in 2011, exceeding $300 billion for the first time. Overall, electricity, petroleum and oil inputs will increase by $3.3 billion to $21.1 billion. Feed grain price increases will also squeeze livestock profit margins.
U.S. agriculture has largely survived the latest financial market turmoil, created in large part by a midsummer heat wave, and strong demand around the world that has kept prices high. Corn prices, for example, are up nearly 70 percent in the last year and posted an all-time high in June.
The report is online at www.ers.usda.gov/Briefing/FarmIncome/nationalestimates.htm.
Reprinted in part from Reuters