U.S. Farm Income, Randy Schnepf, Specialist in Agricultural Policy, August 28, 2012
“According to USDAs Economic Research Service (ERS), national net farm incomea key indicator of U.S. farm well-beingis forecast at a record $122.2 billion in 2012, up 3.7% from last years record. Record gross revenues from crop sales (forecast at $222.1 billion), coupled with record revenues (forecast at $34.1 billion) from farm-related income -a category that includes crop insurance indemnity payments as well as income from custom work, machine hire, etc. – pushed total gross cash income to a record $433.6 billion (up 5.5%). This more than offset flat revenues from livestock markets ($165.8 billion), and a 6.6% increase in input costs (forecast at $294.2 billion) to account for the record forecast for overall net returns. When measured in cash terms, net cash income in 2012 is also projected record large at $139.3 billion, up 3.4% from last years record. However, when adjusted for inflation, current farm income forecasts remain well below the peak period of the early 1970s.”
Related postings on financial system
