Wednesday, November 27, 2013

Farm income, adjusted for inflation, is forecast to be higher than in any year since 1973

U.S. farm income, adjusted for inflation, is expected to be the highest in 40 years, thanks mainly to a record corn harvest and the third-largest soybean crop ever, the Department of Agriculture says. The $131 billion forecast is 15 percent above last year, when drought cut yields.

"Corn and soybeans are the nation's largest crops by value, but the strong incomes this year extend beyond the row crops of the Midwest to almond and vegetable farms in places like California. Alfalfa and hay sales to China also have been strong," Jesse Newman reports for The Wall Street Journal. Corn prices have fallen sharply in the last few months, but "Many growers were able to lock in higher prices earlier this year through contracts—a tactic that is unlikely to be repeatable next year." (Read more)

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