February 17, 2010

US farm income seen to increase 12% this year

Net farm income in the US is projected to reach US$63 billion this year, up US$6.7 billion or 11.8% from 2009, and the livestock industry is expected to gain.

The 2010 USDA forecast is US$1.4 billion below the average of US$64.5 billion in net farm income earned in the previous 10 years. Still, the US$63 billion forecast for 2010 remains the fifth largest amount of income earned in US farming.

In 2010, the economic conditions for livestock producers are expected to improve, while the economic conditions for crop producers are expected to deteriorate slightly or stabilise. Total expenses are forecast to be little changed from 2009.

Slight annual increases are expected in 2010 for poultry and egg sales. Broiler and egg production for sales are expected to increase slightly by 1% and 0.6%, respectively. Price increases are anticipated to increase 0.2 cent per pound for broilers, 2.8 cents per pound for turkeys and 2.3 cents per dozen for eggs.