FAPRI: Livestock Can Lead to Higher Net Farm Income

The livestock sector can lead the agricultural economy to higher net farm income, assuming the farm economy benefits from a recovering general U.S. economy.

That analysis tops a 2010 baseline report prepared by the University of Missouri Food and Agricultural Policy Research Institute (FAPRI). The 66-page report was delivered to Congress on Tuesday. The 10-year baseline shows economic possibilities for livestock, crop and biofuels under certain assumptions.

“If jobs—and consumers—return, the agricultural sector will benefit,” said Pat Westhoff, co-director of FAPRI. “Higher incomes increase the demand for food, feed, fiber and fuel, supporting farm commodity prices.”

Projected net farm income increases the next two years largely because of stronger livestock prices. “The recovery would mark a major change in direction for the farm economy after a dismal 2009, but 2010 farm income recovers only a third of the ground lost in 2009,” Westhoff said. Net farm income fell by more than $30 billion in 2009, as sharp declines in cash receipts were not offset by modest drops in production costs.

(Image: dgroth)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: