Record Farm Net Income For ’08

USDA reported that net farm income this year will be a record $96 billion, over $9 billion above last year. Ag Department economist Larry Salathe says crop receipts are up $15 billion and livestock receipts are up $7 billion from February.

Unfortunately, production costs are also projected to be a record high, $300 billion. Salathe said that is a $40 billion increase over last year and comes on top of a $20 billion jump in 2007. Fertilizer expenses are up 58%, fuel expenses are 39% higher and feed prices increased too.

Bottom line, increases in crop receipts are well ahead of the increase in expenses but livestock producers are being squeezed.