Net Farm Income Forecast Up 28 Percent in 2011
Net farm income is forecast at $100.9 billion for 2011, up $21.8 billion for a rise of 28 percent from 2010. All three measures of farm sector earnings (net farm income, net cash income, and net value added) are forecast to rise more than 18 percent in 2011.
Net farm income and net cash income are both projected to exceed $100 billion for the first time in 2011. The 2011 inflation-adjusted forecasts of net value added of agriculture to the U.S. economy and net cash income are the highest values recorded since 1974.
Crop receipts are expected to rise over 16 percent in 2011, led by sales of corn, soybeans, and wheat. Livestock receipts are expected to increase by 17 percent, with the receipt forecasts for cattle, dairy, and hogs reaching new nominal highs. Following a modest 2-percent increase in 2010, total expenses are forecast to be 12 percent higher in 2011, with the largest increases expected for fertilizer, fuels, and feed.
Farm sector assets are expected to rise by slightly more than 6 percent for the second straight year in 2011, due mainly to a projected 7.2-percent increase in the value of farm real estate. Farm sector debt is estimated to decrease by 1.8 percent in 2011. The forecast debt-to-asset ratio of 10.4 percent would match 2007's historic low, as would the 11.6-percent debt-to-equity ratio.
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Median Farm Household Income Also Forecast Up in 2011
Median total farm household income is expected to increase by 1.2 percent in 2011, to $54,817. Most farm households earn the majority of their income from off-farm sources and off-farm median income is expected to increase by 2.9 percent in 2011, to $50,949. In 2010, median total farm household income was $54,162, up 3.7 percent from 2009 and 0.8 percent above the 5-year average for 2006-10. Median farm and off-farm incomes in 2010 were $-2,020 and $49,490, respectively, both higher than in 2009.
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See also
- Agricultural
Income and Finance Outlook for historical
estimates and forecasts of farm sector
financial information that allows readers
to gauge the financial health of the
Nation's farmers and ranchers
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