US farm income up 24% on higher returns for soy and livestock

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Publish time: 3rd September, 2010      Source: www.cnchemicals.com
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September 3, 2010

   

   

US farm income up 24% on higher returns for soy and livestock

   

   

   

The USDA now estimates that net farm income will rise 24% in 2010 due to higher returns for soy and livestock producers.

   

   

The department also raised its estimates of US farm exports as strong demand for US grain due to the drought in Russia and Eastern Europe and China''s unexpected transition to a net corn importer.

   

   

The USDA estimates that net US farm income will be US$771 billion in 2010, up 24% from 2009 and US$12.3 billion above the 10-year average. Cash receipts are expected to increase 6.5%, due mainly to higher livestock receipts.

   

   

Livestock producers, led by dairy and pork, are leading the rebound this year. Cash receipts on milk are expected to be up 26% compared to 2009 and income from pork is expected to rise by 25% due to reduced production and rising demand domestically and overseas. Cash receipts for cattle and calves are expected to increase by roughly 11%.

   

   

Corn sales are expected to be below their 2008 high due to a lower average annual price and high production estimates in 2010. Currently, the 2010 corn crop is forecast to set new records for yields and production.

   

   

Soy sales are expected to rise 9% from 2009 to a record annual value due to an increase in exports. Demand for soy may overtake production in 2010 if there is a strong recovery in biodiesel production.

   

   

Wheat sales are estimated to decline in 2010 due to a US$0.50 lower annual average price partially offset by a 36% increase in exports.

   

   

The USDA estimates US agricultural exports to rise 5.1% to US$113 billion in 2010, driven by the drought in Russia. Reduced competition from Russia will allow US wheat farmers to exports US$8.1 billion of wheat, a 35% increase from the previous USDA forecast.