(Editor’s note: As we celebrate Minnesota Farm Guide’s 10th anniversary, we are presenting a series of articles showing how far agriculture has come in the past decade.)
These are the good times in agriculture, with prices moving significantly higher from 2002 to 2012.
According to the USDA Economic Research Service, U.S. net farm income is forecast to be the second highest on record at $91.7 billion in 2012.
Last year, 2011, holds the record for the highest net farm income at $98 billion.
Crop receipts are expected to increase slightly in 2012 over 2011. A decline is anticipated in receipts for U.S. livestock sales.
Expenses increased along with higher commodity prices over the past 10 years. In fact, every expense other than livestock purchases, fertilizer and rent is expected to increase slightly in 2012. Seed expenses were not expected to rise as much in 2012 as in 2011.
Feed expenses were expected to rise by 3.5 percent in 2012 – compared with a 25 percent jump in feed costs in 2011.
Minnesota agriculture ranks fifth nationally in total cash receipts – seventh in livestock and livestock products and fourth in crops.
“The world increasingly looks to Minnesota as a reliable source of quality food and fuel,” said Dave Frederickson, Minnesota Department of Agriculture Commissioner. “Every agricultural production job supports an additional 1.5 jobs in all economic sectors.”
When agriculture does well, farmers help their local communities by providing jobs and infusing dollars through their purchases in products and services. The total employment impact for Minnesota agriculture tops 342,000 jobs.
Agriculture is one of the few industries that create new wealth for the United States and Minnesota. Farmers take inputs and dramatically increase the yield through their knowledge and hard work. It’s during good times – like the past 10 years – that farmers hopefully have seen the fruits of their labors.
Information from the Economic Research Services, Minnesota Ag Statistics 2011, and National Ag Statistics.