According to the Economic Research Service of USDA, net farm income is forecast to be up 24% this year to $77.1 billion. That number 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%, due mainly to higher livestock receipts.
Farm business equity, assets minus debt, is expected to rise by 3.5%, largely due to an expected 2.9% increase in the value of farm business real estate and a 4.2% decline in farm business debt. The farm business sector's debt-to-asset ratio is expected to decline to 11.2% and debt-to-equity is expected to decline to 12.6% in 2010, indicating an improvement in the farm sector's solvency.
Both farm and off-farm income are forecast to be up this year, pushing the average family farm household income up by 5.8% to $81,670. In 2010, the average family farm is forecast to receive 11.1% of its household income from farm sources, with the rest from earned and unearned off-farm income.
Powered by iNet Solutions Group ©2011 All Rights Reserved.