Two reports, one on exports and another on net farm income, were released on Tuesday. Both were very optimistic for those in agriculture.
In one report, the USDA tells us that fiscal 2011 agricultural exports are forecast at $113 billion, up $5.5 billion from the revised 2010 forecast. Along with that, fiscal 2010 exports are raised $3 billion from the May forecast to $107.5 billion, due mostly to greater grain and feed shipments and higher values along with increased livestock, poultry, and dairy product exports. Much of the overall increase is due to greater shipments to Asia, primarily Hong Kong and South Korea.
Along with good exports, producers are also seen as becoming more profitable. Net farm income is forecast to be $77.1 billion in 2010, up $14.9 billion (24 percent) from 2009. The 2010 forecast is $12.3 billion above the average of $64.8 billion in net farm income earned annually in the previous 10 years and is the fourth largest amount of income earned in U.S. farming. Cash receipts are expected to increase 6.5 percent, due mainly to higher livestock receipts.
© Northern Ag Network 2010