Sep 1, 2010

USDA reports higher farm earnings, exports in 2010

USDA released two reports on Aug. 31 that identified an increase in farm exports and higher farm earnings over 2009.

"Today’s reports are encouraging news. They show that while American agriculture has struggled through difficult economic times, the 2008 Farm Bill, the efforts of the Obama Administration – such as the Recovery Act – and the hard work and resilience of America’s farmers and ranchers have helped put American agriculture on the road to recovery," Agriculture Secretary Tom Vilsack said in a statement.

"After declining more than 20 percent in 2009, all three measures of farm sector earnings experienced a rapid rebound and are forecast to rise in 2010:

– Net cash income is expected to rise more than 23 percent to $85.3 billion – the second highest on record and above its previous 10-year average;

– Net farm income has rebounded, up 24 percent from 2009, when demand for agricultural products fell worldwide due to the global recession;

– Net value added, at $127.3 billion, is expected to be up $15.2 billion from 2009, and remain 17.7 percent above its 10-year average.

Farm asset values are projected to increase by 2.5 percent in 2010, as are equity values, according to the report. And average farm family household income is projected to reach more than $81,000 in 2010 – up 5.8 percent from 2009.

USDA also reported that agricultural exports for Fiscal Year 2010 rose to $107.5 billion – the second highest year on record. That is a $3 billion increase from the May forecast, and an $11 billion increase over last year, according to the agency. And agriculture is one of the only major sectors of the American economy with a trade surplus – expected to be $30.5 billion this year.