Farm Sector Income Is Forecast to Decline in 2009
Net farm income is forecast to be $54.0 billion in 2009, down $33.1 billion (38 percent) from the preliminary estimate of $87.1 billion for 2008. The 2009 forecast is $9.6 billion below the average of $63.6 billion in net farm income earned in the previous 10 years.
In 2009, crop prices have continued to decline and prices
for livestock animals and products have experienced sharp
declines. With economic conditions deteriorating worldwide,
demand for exports has tailed off, with few options available
to expand marketing elsewhere. Sharply declining demand
in 2009 has forced farmers to accept prices that are
lower than were expected earlier in the year when production
plans were made.
On the input side, prices are also projected to be lower
than in 2008, particularly for most manufactured inputs,
feed, and services such as repairs or transportation. Overall,
the reduction in gross income will far exceed the reduction
in production costs, leaving all net measures of income
and output below the record or near record levels established
in 2008.
 d
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for farm sector income.
Average Farm Household Income Forecast Down
in 2009
In 2009, average family farm household income
is forecast to be $75,895, down 5.2 percent
from 2008, and 8.0 percent below the five-year
average for 2004-08. In 2009, the average
family farm is forecast to receive 7.6 percent
of its household income from farm sources,
with the rest from earned and unearned off-farm
income.
 d
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for farm household income.
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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