According to USDA’s Economic Research Service net farm income will be up nearly 20 percent in 2011, totaling 94.7-billion dollars. This is despite a 20-billion dollar jump in production expenses. The 2011 forecast is the second highest inflation-adjusted value for net farm income recorded in the past 35 years. Cash receipts are expected to increase 9.1 percent, with cotton, soybean, wheat, and corn receipts showing the largest gains. The value of the farm sector’s equity or net worth is forecast to rise 6.8 percent. The estimated increase is largely due to an estimated 6.3-percent increase in the value of farm business real estate. The farm business sector’s debt-to-asset ratio is expected to decline from 11.3 percent in 2010 to 10.7 percent in 2011, and the debt-to-equity is expected to decline to 12.8 percent in 2010 to 12.0 percent in 2011. This indicates the farm sector’s solvency position remains strong. In 2011, average family farm household income is forecast to be up 4.0 percent over 2010 to $86,352. Both on-farm and off-farm income are forecast to be up in 2010 and 2011, compared to the previous years. In 2011, 12.9 percent of the income of farm families is expected to be from farm sources, with the rest from off-farm income.
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