ERS- Farm Income
Yesterday, the U.S. Department of Agriculture’s Economic Research Service (ERS) released an updated Farm Sector Income Forecast for 2009.
In part, ERS indicated that, “Net farm income is forecast to be $54.0 billion in 2009, down $33.2 billion (38 percent) from the preliminary estimate of $87.2 billion for 2008. The 2009 forecast is $9 billion below the average of $63.2 billion in net farm income earned in the previous 10 years [related graph].”
“In 2009, crop prices [related graph] 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,” ERS said.