Ag Economy (Farm Income, Trade)
Yesterday, USDA’s Economic Research Service (ERS) released its Farm Income and Costs: 2010 Farm Sector Income Forecast, which indicated that, “Net farm income is forecast at $81.6 billion in 2010, up 31 percent from 2009 and 26 percent higher than the 10-year average of $64.8 billion for 2000-2009 [related graph].”
ERS explained that, “The mid-1970s was the last comparable period when U.S. farming enjoyed multiple years of sustained levels of high output and income.
“A second feature of the 2000-2009 decade is the high and persistent levels of volatility in agricultural commodity and input (feed, fuel, and fertilizer) markets. The volatility is reflected in the patterns of farm income during the decade. Net farm income increased in 6 of the 10 years, posting an average increase of 26.6 percent in the years with increases in farm income and an average decline of 23.5 percent in the other years (2002, 2005, 2006, and 2009).”