USDA Predicts 13 Percent Farm Income Climb in 2017

September 1, 2017 03:24 PM

The USDA is forecasting green in net farm incomes this year, signaling a possible bottom in the ag economy.

Net income has been falling since 2013, and USDA is projecting producers could see a 13 percent climb in net farm income in 2017.

Forecasts point to $63.4 billion in total income, with much of that coming from the livestock sector.

According to the USDA, increased sales of inventory of grain in bins is helping, but it’s mainly higher revenue from livestock and milk as many grain farmers are still feeling the pinch from faded crop prices.

“One of the things that we’re really looking for is the stress in working capital,” said Alan Hoskins, president and CEO of American Farm Mortgage. “We’ve seen over the past 20 years some very good benefits be given to the farmer relative to land appreciation. Unfortunately, that land equity doesn’t translate into paying bills.”

USDA is also forecasting green in farmland values, projecting farmland to rise 2.3 percent this year on the heels of a minor decline in 2016.

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Spell Check

auburn, IN
9/13/2017 02:47 PM

  Shit, if USDA can take 3 ears of corn in a field and tell us we got 170 bu corn , then they must be a lot smarter than any of us will ever be

bad axe, MI
9/1/2017 09:19 PM

  If you believe there crop projections for this year then I guess you will believe there income projections. The bottom line on this is we produce to much crop for our own use and we can't export the excess at a profit because our cost of production is to high. $300.00 an acre farmland in Russia, $14,000.00 an acre farmland in the Midwest. When you print $200,000.00 worth of credit for every man, women and child in this country you can't service the debt. That's why China is buying everything in this country Tyson foods, Syngenta, Jeep. With farm income down over 40% since 2013, your still down 27% . I wonder if the USDA can add and subtract.

Jordan, MN
9/13/2017 01:17 PM

  I'm not sure how the USDA computes their statistics, but I can tell you that in central MN, the reality is that income is going to be down a lot from 2016. The yields for soybeans and corn will be good, but the prices this year - particularly for corn - have been much lower than in 2016. Soybean prices have been a little better than last year, but soybeans just don't gross enough an acre compared to corn. Also, most counties in MN will see no government payments from ARC-CO, with nothing expected in 2018 either. This downturn could easily last a few more years, I'm glad we didn't load up on a bunch of debt when times were good.


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