The USDA Farm Income Forecast paints a bright picture for agricultural profitability this year. Net farm income is forecast at $100.9 billion for 2011, up $21.8 billion (28%) from 2010 while net cash income at $109.8 billion, is forecast up $17.5 billion (18.9%) from 2010, and $34.2 billion above its 10-year average (2001-2010) of $75.6 billion.
Net cash income reflects only the cash transactions occurring within the calendar year. Net farm income is a measure of the increase in wealth from production, whereas net cash income is a measure of solvency, or the ability to pay bills and make payments on debt.
“Today’s farm income forecast shows that the American brand of agriculture continues to be a bright spot in our nation’s economy. Following on a strong 2010, all three measures of farm sector earnings again experienced strong growth in 2011. According to today’s numbers, farmers are earning 28% more for their products than they made last year.… Continue readingRead More »