.

U.S. Farm Income
Randy Schnepf
Specialist in Agricultural Policy
September 3, 2010
Congressional Research Service
7-5700
www.crs.gov
R40152
CRS Report for Congress
P
repared for Members and Committees of Congress
c11173008

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U.S. Farm Income

Summary
According to USDA’s Economic Research Service (ERS), national net farm income—a key
indicator of U.S. farm well-being—is forecast at $77.1 billion in 2010, up 24% from the previous
year’s total of $62.2 billion, but well off of the 2004 record of $87.4 billion. Higher revenues
from strengthening livestock markets (while crop revenues hold steady) are expected to offset a
slight increase in input costs to account for the forecast higher net returns.
A major catalyst behind projections for stronger farm income is the outlook for sharply higher
U.S. agricultural exports in 2010 (forecast up 11% to $107.5 billion) and 2011 (projected up 5%
to $113 billion). A recovering global economy is expected to support strong demand for cotton,
feed grain, and livestock products. In addition, severe drought in Russia, Kazakhstan, and the
Ukraine has lowered export supplies from those traditional feed grain export markets, while
continued strong income growth in China is driving robust Chinese import demand for cotton,
grains, and oilseeds. As a result, strong international demand is firming up market prices and
improving the earnings outlook for most agricultural commodities, but especially for livestock
and cotton producers.
Government farm payments are projected down about 2.7% in 2010 at $11.9 billion, as higher
cotton prices are expected to sharply reduce payments under the marketing loan and counter-
cyclical payment programs (down a combined $1.8 billion). In contrast, ad hoc and emergency
disaster assistance is projected at $2.3 billion in 2010, up sharply from 2009. In particular,
eligible recipients under the Supplemental Revenue Assistance Payments (SURE) Program are
expected to begin receiving payments in calendar year 2010. About half of the rise in government
farm payments is attributable to payments made under the SURE Program and the Dairy
Economic Loss Assistance Payments Program.
Farm production expenses are forecast up only slightly (1.1%) at $284 billion in 2010, as lower
feed and fertilizer costs partially offset expected rises in fuel costs and property taxes.
Farm asset values—which reflect farm investors’ and lenders’ expectations about long-term
profitability of farm sector investments—are expected to rebound (up 1.4%) in 2009 to $2,043
billion after having fallen nearly 2% in 2008 with the decline in the general economy. Farm asset
values are projected to rise another 2.5% in 2010 to $2,096 billion. Higher farm asset values are
due primarily to stronger farm real estate values, which had fallen by 3.2% during 2009, the first
decline since 1987. Farm land cash markets in early 2010 suggest that land values have stabilized
but could see renewed gains related to strong crop prices in 2010. This same pattern is reflected in
both cropland and pastureland values.
The farm debt-to-asset ratio had been steadily declining since 1998’s value of 16% to a recent low
of 10.4% in 2007, before rising to 12% in 2008 and 2009. The ratio is expected fall in 2010 to
about 11.2%.
These data suggest a mildly stronger financial position in 2010 for the agriculture sector as a
whole. An improving global economic outlook for 2010 is expected to slowly reinvigorate
international consumer demand while the U.S. economy remains sluggish. Signs of this can
already be seen as strong demand-led growth, primarily from export markets, has pushed most
commodity prices higher in the first half of 2010.

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Contents
Introduction ................................................................................................................................ 1
Calendar Year 2010: Farm Income Forecast Up ........................................................................... 2
Cash Receipts ....................................................................................................................... 4
Crops .............................................................................................................................. 4
Livestock ........................................................................................................................ 6
Government Payments .......................................................................................................... 7
Production Expenses ............................................................................................................. 9
Agricultural Trade Outlook ................................................................................................. 10
Long-Run Farm Income Projections to 2019 ............................................................................. 12
Farm Asset Values and Debt ...................................................................................................... 13
Average Farm Household Income.............................................................................................. 14

Figures
Figure 1. Annual U.S. Farm Sector Income, 1960 to 2010F ......................................................... 2
Figure 2. Monthly Farm-Prices-Received for Major Field Crops.................................................. 3
Figure 3. Monthly Farm-Prices-Received for Major Livestock Products ...................................... 3
Figure 4. Farm Cash Receipts by Source, 1990 to 2010F ............................................................. 5
Figure 5. Crop Cash Receipts by Source, 2005 to 2010F.............................................................. 5
Figure 6. U.S. Livestock Product Cash Receipts by Source, 2005 to 2010F.................................. 7
Figure 7. U.S. Government Farm Support, Direct Outlays, 1997 to 2010F ................................... 8
Figure 8. Farm Cash Production Expenses by Source, 2005 to 2010F .......................................... 9
Figure 9. U.S. Farm Gross Revenue, Production Expenses, and Net Income .............................. 10
Figure 10. U.S. Agricultural Trade, Since 1940.......................................................................... 11
Figure 11. U.S. Agricultural Trade: Bulk vs. High-Value Shares ................................................ 11
Figure 12. USDA Long-Run Farm Income Projections, 2010-2019............................................ 12
Figure 13. U.S. Average Farm Land Values, 1985 to 2010 ......................................................... 13
Figure 14. U.S. Farm Debt-to-Asset Ratio Since 1960 ............................................................... 14
Figure 15. U.S. Average Farm Household Income, by On- and Off-Farm Sources,
Since 1960 ............................................................................................................................. 15
Figure 16. Comparison of Farm to U.S. Average Household Income Since 1960........................ 16
Figure 17. Ratio of Farm to U.S. Average Household Income Since 1960 .................................. 16

Tables
Table 1. Distribution of Farms and Value of Production by Farm Size, 2009 .............................. 15
Table 2. U.S. Crop and Livestock Revenue ($ Billions) by Source, 2005-2010F ........................ 17
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Table 3. U.S. Farm Production Expenses ($ Billions) by Source, 2005-2010F............................ 18
Table 4. Annual U.S. Farm Income Since 2003.......................................................................... 19
Table 5. Average Annual Income per U.S. Household, Farm versus All, 2003-2010F ................. 20
Table 6. Average Annual Farm Sector Debt-to-Asset Ratio, 2003-2010F.................................... 20
Table 7. U.S. Prices and Support Rates for Selected Farm Commodities Since 2004 .................. 21

Contacts
Author Contact Information ...................................................................................................... 22

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U.S. Farm Income

Introduction
The U.S. farm sector is vast and varied. It encompasses production activities related to traditional
field crops (such as corn, soybeans, wheat, and cotton), livestock and poultry products (including
meat, dairy, and eggs), as well as fruits, tree nuts, and vegetables. In addition, U.S. agricultural
output includes greenhouse and nursery products, forest products, custom work, machine hire,
and other farm-related activities. The intensity and economic importance of each of these
activities, as well as their underlying market structure and production processes, vary regionally
based on the agro-climatic setting, market conditions, and other factors. As a result, farm income
and rural economic conditions may vary substantially across the United States.1 However, this
report focuses singularly on aggregate national net farm income and the farm debt-to-asset status
as reported by the U.S. Department of Agriculture (USDA).2
Annual U.S. net farm income is the single most watched indicator of farm sector well-being, as it
captures and reflects the entirety of economic activity across the range of production processes,
input expenses, and marketing conditions that have persisted during a specific time period. When
national net farm income is reported together with a measure of the national farm debt-to-asset
situation, the two summary statistics provide a quick indicator of the economic well-being of the
national farm economy.
Two different indicators measure farm profitability: net cash income and net farm income.
• Net cash income compares cash receipts to cash expenses. As such, it is a cash
flow measure representing the funds that are available to farm operators to meet
family living expenses and make debt payments. For example, crops that are
produced and harvested but kept in on-farm storage are not counted in net cash
income. Farm output must be marketed (i.e., exchanged for payment) before it is
counted as part of the household’s cash flow.
• Net farm income is a value of production measure, indicating the farm
operator’s share of the net value added to the national economy within a calendar
year, independent of whether it is received in cash or noncash form. In contrast to
net cash income, net farm income includes the value of home consumption,
changes in inventories, capital replacement, and implicit rent and expenses
related to the farm operator’s dwelling that are not reflected in cash transactions
during the current year. Thus, once a crop is grown and harvested it is included in
the farm’s net income calculation, even if it remains in on-farm storage.
Net cash income is generally less variable than net farm income. Farmers can manage the timing
of crop and livestock sales and of the purchase of inputs to stabilize the variability in their net
cash income. For example, farmers can hold crops from large harvests to sell in the forthcoming
year, when output may be lower and prices higher. Off-farm income, which has increased in
importance in recent decades, is not included in the calculation of aggregate farm income.
Instead, it is included in the discussion of farm income at the household level.

1 For information on state-level farm income, see the “U.S. and State Farm Income Data,” available as part of the Farm
Income Data Files, Farm Income and Costs Briefing Room, Economic Research Service (ERS), USDA, at
http://www.ers.usda.gov/data/FarmIncome/finfidmu.htm.
2 For a more detailed discussion of the issues in this report, see the Briefing Room “Farm Income and Costs: 2009 Farm
Sector Income Forecast,” ERS, USDA, at http://www.ers.usda.gov/Briefing/FarmIncome/nationalestimates.htm.
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U.S. Farm Income

Calendar Year 2010: Farm Income Forecast Up
U.S. net farm income is forecast at $77.1 billion in 2010, up $14.9 billion (24%) from the 2009
slump (Figure 1 and Table 4).3 When measured in cash terms, net cash income in 2010 is
projected up 23.4% to $85.3 billion, compared with the previous year’s total of $69.1 billion.
The 2010 outlook for a return to higher farm income occurs in spite of continued weak domestic
economic conditions, and is being driven, in large part, by robust agricultural export growth and
concomitant higher commodity prices, accompanied by only modest increases in production
expenses.
Figure 1. Annual U.S. Farm Sector Income, 1960 to 2010F
100
80
Net Cash Income
n 60
o
illi
$ B 40
Net Farm Income
20
0
1960
1970
1980
1990
2000
2010
Source: USDA, Economic Research Service, “2010 Farm Income Forecast,” August 31, 2010, at
http://www.ers.usda.gov/Briefing/FarmIncome/.
Notes: All values are in nominal terms, i.e., not adjusted for inflation. 2009 is preliminary, 2010 is forecast.
A recovering global economy is expected to support strong demand for cotton, feed grain, and
livestock products. In addition, severe drought in Russia, Kazakhstan, and the Ukraine has
lowered export supplies from those traditional feed grain export markets, while continued strong
income growth in China is driving robust Chinese import demand for cotton, grains, and oilseeds.
As a result, strong international demand is firming up market prices (Figure 2 and Figure 3) and
improving the earnings outlook for most agricultural commodities, but especially for livestock
and cotton producers.

3 ERS’s 2010 farm sector income forecast, last updated on August 31, 2010, is available at the Farm Income and Costs
Briefing Room, at http://www.ers.usda.gov/Briefing/FarmIncome/nationalestimates.htm.
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U.S. Farm Income

Figure 2. Monthly Farm-Prices-Received for Major Field Crops
20
70
Cotton

s)
60
ean
16
yb
50
so
ce)
eat,
h
12
t (ri
40 tton)
, w
o
Rice
rn
r cw
(c
e
d
(co
30
r $ p
8
el
o
sh
Soybeans
r poun
u
20
r b
e
$ pe
Wheat
4
$ p
10
Corn
0
0
2002
2004
2006
2008
2010

Source: USDA, National Agricultural Statistics Service.
Figure 3. Monthly Farm-Prices-Received for Major Livestock Products
100
24
Cattle, 500+ lbs
)
rs 80
18
le
oi
, br
All Milk
gs
ilk)
m
, ho
e
t (
60
ttl
12 w
a
All Hogs
(c
t
w
$ per c
r c
pe
$ 40
6
Broilers
20
0
2002
2004
2006
2008
2010

Source: USDA, National Agricultural Statistics Service.
Note: cwt = hundredweight or units of 100 lbs.
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U.S. Farm Income

During the 2005-2008 period, U.S. domestic demand was supported by the rapid emergence of
the U.S. agriculture-based ethanol industry. In addition, strong export demand through 2007 and
the first half of 2008, aided in part by a weak dollar, helped to draw stocks for major grains and
oilseeds to historically low levels in 2008, thus supporting higher market prices. After reaching
record net cash income and near-record net farm income in 2008, the U.S. farm economy slowed
considerably in 2009 owing to falling global demand and weak commodity prices for most major
field crops and livestock products.
The economic conditions that arose in late 2008—a global financial crisis, economic recession,
rising unemployment, limited credit availability, and plummeting asset values—persisted into
2009 and contributed to a severe weakening of consumer demand through most of 2009. As a
result, domestic and international demand for biofuels, as well as meat and dairy products (and
subsequently feed grain), eroded dramatically.
But an improving global economic outlook for 2010 is expected to slowly reinvigorate
international consumer demand while the U.S. economy remains sluggish. Signs of this can
already be seen as strong demand-led growth, primarily from export markets, has pushed most
commodity prices higher in the first half of 2010.
Cash Receipts
Most livestock product prices—milk, cattle, hogs, and broilers—are expected to remain strong
through the 2010 calendar year (Table 7). As a result, livestock receipts are forecast up nearly
15% (Table 2). In contrast, total crop receipts are forecast to remain steady. Crop price prospects
for wheat, corn, sorghum, and cotton are expected to improve dramatically in 2010, also driven in
large part by international market demand. Receipts for cotton are forecast at $5.3 billion for
2010, up over 50% year-to-year. USDA is currently (August 12, 2010) forecasting record harvests
for corn soybeans in 2010; however, these record harvests appear necessary to hold supplies
steady with strong demand thus supporting crop prices.
The combined value of cash receipts from sales of both crop and livestock commodities is
projected at $301.8 billion in 2010, up $18.4 billion (6.5%) from 2009 (Table 4 and Figure 4),
but well short of the record $318.3 billion in 2008.4
Crops
Crop cash receipts in 2010 are projected nearly steady at $164.3 billion, up a slim 0.4% from
2009 (Figure 5). Sales of field crops (i.e., feed, food, and oil crops) are expected to decline about
1% from 2009 to $98.8 billion. This total includes feed crop (i.e., corn, sorghum, barley, and oats)
sales of $48 billion, down 4%, food crop (i.e., wheat and rice) sales of $13.2 billion, down 8%,
and oil crop (i.e., soybeans, sunflowers, rapeseed/canola, and other minor oilseeds) sales of a
record $32.3 billion, up 1.2%. The major exception is cotton, with sales forecast at $5.3 billion, a
rise of over 50% due to projected higher exports in 2010.

4 For details regarding individual commodity market developments, refer to the monthly commodity outlook reports
prepared by USDA’s Economic Research Service (ERS), available at http://www.ers.usda.gov/Publications/Outlook/.
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U.S. Farm Income

Figure 4. Farm Cash Receipts by Source, 1990 to 2010F
360
Government Payments
Farm-Related Income
300
240
n
o
illi 180
B
$
Livestock Product Receipts
120
60
Crop Receipts
0
1990
1995
2000
2005
2010
Source: USDA, Economic Research Service, “2010 Farm Income Forecast,” August 31, 2010, at
http://www.ers.usda.gov/Briefing/FarmIncome/.
Notes: 2009 is preliminary, 2010 is forecast. Receipts from crop and livestock product sales, and government
payments, are described in more detail below. Farm-related income includes income from custom work, machine
hire, agri-tourism, forest product sales, insurance indemnities, and cooperative patronage dividend fees.
Figure 5. Crop Cash Receipts by Source, 2005 to 2010F
200
Other
Cotton
150
Fruits &
Vegetables
n
illio 100
Food crops
B
$
Oil
crops
50
Feed
crops
0
2005
2006
2007
2008
2009P
2010F

Source: USDA, Economic Research Service, “2010 Farm Income Forecast,” August 31, 2010, at
http://www.ers.usda.gov/Briefing/FarmIncome/.
Notes: 2009 is preliminary, 2010 is forecast. See Table 2 for details.
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During the 2005-2009 period, crop output and sales were influenced by the rapid expansion of
corn-based biofuel production, due in large part to strong federal incentives. With strong federal
support, the U.S. corn-based ethanol industry has grown rapidly from 2004, when 3.4 billion
gallons of ethanol were produced, to 2009, when 10.7 billion gallons were produced.5
The U.S. ethanol sector received a substantial boost in December 2007, when the Energy
Independence and Security Act (EISA) was signed into law (P.L. 110-140). EISA greatly expands
the mandate for corn-based ethanol use from 10.5 billion gallons in 2009 to 12 billion gallons in
2010, and 15 billion gallons by 2015.6 As a result of surging ethanol production, an ever-
increasing share of the U.S. corn crop has been used to produce ethanol. This additional demand
has helped to push corn and other crop prices steadily higher since 2005 as they compete for a
fixed amount of cropland (Figure 2 and Table 7).
However, the global financial crisis and weakened economies sharply curtailed demand for
energy, feed grain, meat, and dairy products (among other consumer goods) in 2009, thereby
pushing energy and commodity prices lower. In addition, a record corn crop of 13.11 billion
bushels in 2009 added to the slump in grain prices. The weak corn price outlook helped to
improve ethanol profit margins substantially into late 2009, and the demand for corn for ethanol
is expected to continue through 2010. USDA projects that corn-for-ethanol use will reach a record
4.7 billion bushels (or 35% of the entire crop) in 2010/2011.7 When coupled with the events
occurring in the international feed grain markets—drought in Russian, Kazakhstan, and the
Ukraine, plus strong Chinese demand for corn and feedstuffs—corn’s price outlook once again
appears positive despite an expected second consecutive record U.S. corn harvest in 2010.
Fruit and tree nuts are expected to experience lower cash receipts in 2010, while vegetable and
melons recover to record sales volume of $21.4 billion, up nearly 4% year-to-year. “Other” crops
are expected to increase by 6%, led by their major component, greenhouse and nursery, as well as
by both sugar crops—sugarcane and sugarbeets.
Livestock
The livestock sector is projected to show a strong recovery in 2010 with cash receipts of $137.5
billion, up nearly 15% from 2009’s depressed total of only $119.8 billion (Figure 6). This
compares with 2008’s record livestock cash receipt total of $141.5 billion. As a result, the
livestock sector is projected to account for nearly 41% of total U.S. farm cash receipts in 2010
(Figure 4). Higher market prices are projected for all major livestock categories, particularly milk
(up 25%), hogs (up 32%), choice steers (up 13%), and broilers (up 7%) in 2010. Dairy cash
receipts are forecast 26% higher in 2010, due primarily to sharply higher milk prices on tighter
supplies and strengthening consumer demand. Hog cash receipts are expected to grow by 25% in
2010.

5 Ethanol production estimates, Renewable Fuels Association, at http://www.ethanolrfa.org/industry/locations/.
6 For more information, see CRS Report R40155, Renewable Fuel Standard (RFS): Overview and Issues, by Randy
Schnepf and Brent D. Yacobucci.
7 World Agricultural Supply and Demand Estimates (WASDE), World Agricultural Outlook Board (WAOB), USDA,
August 12, 2010; available at http://www.usda.gov/oce/commodity/wasde/.
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U.S. Farm Income

Figure 6. U.S. Livestock Product Cash Receipts by Source, 2005 to 2010F
150
Other
Dairy
100
Poultry
on
&
illi
Eggs
B
$
Hogs
50
Cattle
&
calves
0
2005
2006
2007
2008
2009P
2010F

Source: USDA, Economic Research Service, “2010 Farm Income Forecast,” August 31, 2010, at
http://www.ers.usda.gov/Briefing/FarmIncome/.
Notes: 2009 is preliminary, 2010 is forecast. See Table 2 for details.
Government Payments
Direct government payments are forecast 2.7% lower, at $11.9 billion, in 2010, and well below
the record of $24.4 billion in 2005 (Figure 7). Combined payments under the counter-cyclical
program and marketing loan provisions declined by $1.8 billion. Nearly all of this decline is due
to higher cotton prices, as other program crop prices remain above program payment triggers for
these programs (Table 7).8 In 2009, almost all of the year-to-year increase in payments under the
marketing loan and counter-cyclical payment programs was directed to cotton producers, as
cotton prices had fallen below relatively high support prices. Payments under the Milk Income
Loss Contract Program (MILC)—which compensates dairy producers when domestic milk prices
fall below a specified level—are also expected to fall sharply to about $53 million in 2010 (from
$880 million in 2009) due to the higher milk prices.

8 For more information on commodity programs, see CRS Report RL34594, Farm Commodity Programs
in the 2008 Farm Bill, by Jim Monke.
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Figure 7. U.S. Government Farm Support, Direct Outlays, 1997 to 2010F
25
All Other
Ad Hoc and Emergency
Conservation
20
Price Contingent
Direct Payments
15
n
illio
B
$
10
5
0
1997
1999
2001
2003
2005
2007
2009P

Source: USDA, Economic Research Service, “2010 Farm Income Forecast,” August 31, 2010, at
http://www.ers.usda.gov/Briefing/FarmIncome/; and USDA, Risk Management Agency, Current Year-to-Date
National Summary of Business Reports, at http://www.rma.usda.gov/data/sob.html.
Notes: Data are on a fiscal year basis and may not correspond exactly with the crop or calendar year; 2009 is
preliminary, 2010 is forecast. Direct payments include production flexibility contract payments enacted under the
1996 farm bill and fixed direct payments of the 2002 and 2008 farm bills; price-contingent outlays include loan
deficiency payments, marketing loan gains, and counter-cyclical payments; conservation outlays include
Conservation Reserve Program payments along with other conservation program outlays; Ad Hoc and
Emergency includes emergency supplemental crop and livestock disaster payments and market loss assistance
payments for relief of low commodity prices; and “all other” outlays include peanut quota buyout payments, milk
income loss payments, tobacco transition payments, and other miscel aneous expenditures.
In contrast, ad hoc and emergency disaster assistance is projected at $2.27 billion in 2010, up
sharply from 2009. Ad hoc and emergency disaster assistance has figured heavily in farm sector
income in most of the previous 20 years (1989-2008).9 In particular, the 2008 farm bill (P.L. 110-
246) created a permanent fund for disaster assistance, the Agricultural Disaster Relief Trust Fund.
Producers in disaster counties who are eligible for Supplemental Revenue Assistance (SURE)
payments made from this trust fund are expected to begin receiving payments in calendar year
2010. About half of the rise in government farm payments is attributable to payments made under
the SURE Program and the Dairy Economic Loss Assistance Payments Program.10
Conservation payments have grown slowly but steadily since 1998; they are expected to be about
$3.1 billion in 2010. Farm fixed direct payments, whose payment rates are fixed in legislation and
are not affected by the level of program crop prices, are forecast steady year-to-year at $4.8
billion, but are down slightly when compared with about $5.1 billion in 2008. Part of this decline

9 CRS Report RS21212, Agricultural Disaster Assistance, by Dennis A. Shields and Ralph M. Chite.
10 CRS Report R40452, A Whole-Farm Crop Disaster Program: Supplemental Revenue Assistance Payments (SURE),
by Dennis A. Shields.
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in direct payments may be attributable to enrollment in the Average Crop Revenue Program
(ACRE). ACRE was authorized by the 2008 farm bill (P.L. 110-246) and provides revenue
insurance to producers in exchange for a 20% reduction in their annual direct payment allotments.
Payments under the ACRE program are forecast at $432 million in 2010.
Production Expenses
Total farm production expenses are forecast to rise by about $3 billion to $284.0 billion in 2010,
about 1.1% higher than in 2009 (Table 3), but well below the anticipated $18.4 billion (6%) rise
in cash receipts. The small increase in production expenses follows a dramatic drop in 2009,
when total expenses fell by $8 billion (2.7%), and puts expenses at the second-highest level ever
(behind 2008’s record tally of $293 billion). Lower fertilizer and feed costs are forecast to be
offset by higher fuel and livestock acquisition costs (Figure 8 and Figure 9). Lower cattle
numbers and slightly lower forecast prices for certain feed grains are expected to lower feed costs
(classified as farm-origin inputs) to $43 billion for livestock producers. This would represent a
second consecutive year of declining feed costs. However, rising cattle prices raise the cost of
acquiring feeder cattle for fattening in feedlots.
Figure 8. Farm Cash Production Expenses by Source, 2005 to 2010F
300
Overhead
250
Other
operating
200
costs
Hired
n 150
o
Interest
illi
B
Manu-
$ 100
factured
inputs
50
Farm
origin
inputs
0
2005
2006
2007
2008
2009F
2010F

Source: USDA, Economic Research Service, “2010 Farm Income Forecast,” August 31, 2010, at
http://www.ers.usda.gov/Briefing/FarmIncome/.
Notes: 2009 is preliminary, 2010 is forecast. See for Table 3 details.
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Figure 9. U.S. Farm Gross Revenue, Production Expenses, and Net Income
360
Gross Revenue
300
240
n
illio 180
B
$
120
Production Expenses
60
Net Cash Income
0
1960
1970
1980
1990
2000
2010
Source: USDA, Economic Research Service (ERS), “2010 Farm Income Forecast,” August 31, 2010, at
http://www.ers.usda.gov/Briefing/FarmIncome/.
Notes: All values are in nominal terms, i.e., not adjusted for inflation. 2009 is preliminary, 2010 is forecast.
Agricultural Trade Outlook
A major catalyst behind projections for stronger farm income is the outlook for sharply higher
U.S. agricultural exports in 2010 (forecast up 11% to $107.5 billion) and 2011 (projected up 5%
to $113 billion; Figure 10). Much of the increase is due to greater grain and feed shipments,
owing to sharply reduced competition from Russia, Kazakhstan, and the Ukraine.11
Over the past four decades, steady growth in high-valued export products (Figure 11) has helped
to push U.S. agricultural export value to ever higher totals; however, the current outlook is driven
primarily by growth in bulk commodity shipments (primarily wheat, rice, feed grains, soybeans,
cotton, and unmanufactured tobacco), which are forecast up 24% in 2010, followed by a
projected 10% rise in 2011. Horticultural exports are forecast up $1.7 billion from 2010 on strong
demand from Canada, the EU, and Asian markets. Increased livestock and poultry product
exports are expected to more than offset slight declines in dairy product exports. Cotton exports
are forecast up significantly with larger domestic supplies and less export competition. The only
major category expected to fall is oilseeds, due in part to increased competition from South
America.

11 USDA, ERS, Outlook for U.S. Agricultural Trade, AES-67, August 31, 2010. For more information on the U.S.
agricultural trade outlook see the ERS quarterly report available at the ERS Agricultural Trade Briefing Room at
http://www.ers.usda.gov/Briefing/AgTrade/.
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Figure 10. U.S. Agricultural Trade, Since 1940
$120
Exports
$90
s
n
o $60
illi
B
$
Imports
$30
Trade Surplus
$0
1940
1950
1960
1970
1980
1990
2000
2010

Source: USDA, ERS, Outlook for U.S. Agricultural Trade, AES-67, Aug. 31, 2010.
Figure 11. U.S. Agricultural Trade: Bulk vs. High-Value Shares
100%
80%
60%
High-Value
40%
20%
Bulk
0%
1975
1980
1985
1990
1995
2000
2005
2010

Source: USDA, ERS, Outlook for U.S. Agricultural Trade, AES-67, Aug. 31, 2010.
The top three forecast markets for U.S. agricultural exports in 2010 are Canada ($16.4 billion),
Mexico ($14.1 billion), and China ($14 billion), followed by Japan ($11.2 billion) and the EU-27
($8.5 billion). U.S. agricultural imports are projected to be record-large in 2011 at $81.5 billion;
however, the trade surplus is expected to remain large at over $30 billion.
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U.S. Farm Income

Long-Run Farm Income Projections to 2019
Several institutions (both public and private)—including USDA, the Organization for Economic
Cooperation and Development (OECD), the Food and Agricultural Policy Research Institute
(FAPRI), and IHS Global Insight—routinely produce long-run 10- to 15-year agricultural
projections for the U.S. farm sector. These annual projections cover agricultural commodities,
agricultural trade, and aggregate indicators of the sector, such as farm income and food prices.
The most recent projections available at the time of this report’s preparation are made by USDA
and cover the period 2009-2019.12 The projections are highly conditional on critical long-term
assumptions made for U.S. and international macroeconomic conditions, U.S. and foreign
agricultural and trade policies, and growth rates of agricultural productivity in the United States
and abroad.
Appending the long-term projections for the 2010-2019 period to the current USDA agricultural
outlook for 2010 produces the chart seen in Figure 12. Based on October 2009 macroeconomic
conditions, USDA projects net farm income levels at around $80 billion (slightly above 2010’s
projected $77.1 billion) with no significant improvement through 2019.
Figure 12. USDA Long-Run Farm Income Projections, 2010-2019
400
Gross Revenue
320
n 240
illio
B
$ 160
Production
Expenses
80
Net Cash Income
0
1960
1970
1980
1990
2000
2010
2020
Source: Data for 1960-2009 are from USDA, ERS, Briefing Room: Farm Income and Costs; data for 2011 to
2019 are from USDA, ERS, Briefing Room: Agricultural Baseline Projections, February 11, 2010.

12 USDA Agricultural Projections to 2019, OCE-2010-1, USDA, ERS, Briefing Room: Agricultural Baseline
Projections, February 11, 2010; at http://www.ers.usda.gov/Briefing/Baseline.
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U.S. Farm Income

Farm Asset Values and Debt
Farm asset values—which reflect farm investors’ and lenders’ expectations about long-term
profitability of farm sector investments—are expected to rebound (up 1.4%) in 2009 to $2,043
billion after having fallen nearly 2% in 2008 with the decline in the general economy. Farm asset
values are projected to rise another 2.5% in 2010 to $2,096 billion (Table 6). Higher farm asset
values are due primarily to stronger farm real estate values (Figure 13), which had fallen by 3.2%
during 2009, the first decline since 1987. Farm land cash markets in early 2010 suggest that land
values have stabilized but could see renewed gains related to strong crop prices in 2010. This
same pattern is reflected in both cropland and pastureland values.
Figure 13. U.S. Average Farm Land Values, 1985 to 2010
$3,000
Cropland
$2,400
re $1,800
c
r A
e
$ p $1,200
Farm Real Estate
$600
Pasture
$0
1985
1990
1995
2000
2005
2010

Source: USDA, NASS, Land Values and Cash Rents, various issues.
Notes: Farm real estate value measures the value of all land and buildings on farms. Cropland and pasture values
are only available since 1998.
Meanwhile, total farm debt is forecast to decline by over 4% to $235 billion in 2019, down from a
record $245 billion in 2009. As a result of the relative improvement between farm asset values
and farm debt, farm equity (or net worth, defined as asset value minus debt) is projected higher in
2010 at $1,861 billion.
The farm debt-to-asset ratio (Figure 14)—which had been steadily declining since 1998’s value
of 16%, rose abruptly to 12% in 2008 and 2009. However, it is forecast to decline sharply in
2010, falling to 11.2%. These data suggest a mildly stronger financial position in 2010 for the
agriculture sector as a whole. The U.S. farm debt-to-asset ratio peaked in 1985 at 23%.
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U.S. Farm Income

Figure 14. U.S. Farm Debt-to-Asset Ratio Since 1960
25%
20%
15%
Farm Debt-to-Asset Ratio
10%
5%
1960
1970
1980
1990
2000
2010
Source: USDA, Economic Research Service, “2010 Farm Income Forecast,” August 31, 2010, at
http://www.ers.usda.gov/Briefing/FarmIncome/.
Note: 2009 is preliminary, 2010 is forecast.
Average Farm Household Income
After two years of declines in 2008 and 2009, average farm household income is forecast up
nearly 6% at $81,670 in 2010. The share of farm income derived from off-farm sources has
increased steadily in recent decades and appears to have peaked at about 95% in 2000. In 2010,
off-farm income sources are forecast to account for about 89% of the national average farm
household income, compared with about 11% from farming activities (Figure 15).
The share of income from farming increases with farm size as measured by gross sales (Table 1).
“Large” commercial farm households (farms with annual sales greater than $250,000) obtained
nearly 70% of household income on-farm and accounted for 80% of the value of total U.S.
agricultural production in 2009, while representing only about 10% of farm households.13
Intermediate family farms (farms with annual sales in excess of $10,000 but less than $250,000)
obtained about 4% of household income from on-farm sources, accounted for about 18% of the
value of total U.S. agricultural production, and represented about 30% of family farms.

13 For more information on farm typology, see the ERS Briefing Room, Farm Household Economics and Well-Being:
Farm Operator Household Income Forecasts, at http://www.ers.usda.gov/Briefing/WellBeing/farmhouseincome.htm.
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U.S. Farm Income

Figure 15. U.S. Average Farm Household Income, by On- and Off-Farm Sources,
Since 1960
$90,000
$75,000
$60,000
$45,000
$30,000
Off-Farm
$15,000
On-Farm
$0
1960
1970
1980
1990
2000
2010
Source: USDA, Economic Research Service, Briefing Room: Farm Household Economics and Well-Being:
Historic Data On Farm Operator Household Income, August 31, 2010, at http://www.ers.usda.gov/Briefing/
WellBeing/Gallery/historic.htm.
Notes: 2009 is preliminary, 2010 is forecast.
Table 1. Distribution of Farms and Value of Production by Farm Size, 2009
Total HH Income
Total U.S.
Family Farms
Production
On-farm
Off-farm
Total
Value of Gross Sales
Number
Share
Share
Share
Share
Value
< $10,000
1,281,788
60.1%
1.5%
-13%
113% $66,832
$10,000 to $249,999
639,270
30.0%
18.4%
4%
96% $96,177
> $250,000
209,949
9.9%
80.1%
70%
30% $164,609
All
2,131,007 100.0%
100.0%
9%
91% $77,168
Source: USDA, ERS, 2009 USDA Agricultural Resource Management Survey.
“Small” farm households (annual sales less than $10,000) actually lost revenue from farming
operations (-13% of household income) and accounted for less than 2% of the value of total U.S.
agricultural production in 2009, while representing over 60% of farm households. A substantial
number of these small farms are classified as rural residence farms and either receive little or no
income from farm sources or have a total income level that qualifies them as limited-resource
farms.
Over the past decade, farm household incomes have surged ahead of average U.S. household
incomes (Figure 16 and Figure 17). In 2008 (the last year for which comparable data were
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U.S. Farm Income

available), the average farm household income of $79,796 was about 17% higher than the average
U.S. household income of $68,424 (Table 5).
Figure 16. Comparison of Farm to U.S. Average Household Income Since 1960
$90,000
Average Farm
Household Income
$75,000
$60,000
$45,000
Average US
$30,000
Household Income
$15,000
$0
1960
1970
1980
1990
2000
2010
Source: USDA, Economic Research Service, “2010 Farm Income Forecast,” August 31, 2010, at
http://www.ers.usda.gov/Briefing/FarmIncome/.
Note: 2009 is preliminary, 2010 is forecast.
Figure 17. Ratio of Farm to U.S. Average Household Income Since 1960
200%
Ratio of Farm to U.S.
Average Household Income
150%
100%
50%
0%
1960
1970
1980
1990
2000
2010
Source: See above source note. 2008 is the last year with comparable data.
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U.S. Farm Income

Table 2. U.S. Crop and Livestock Revenue ($ Billions) by Source, 2005-2010F
Change
Item
2005 2006 2007 2008 2009 2010a
(%)
Field crops
57.9
62.6
86.9
111.6
100.0
98.8
-1.1%
Food
grains
8.6 9.1 13.6 18.7 14.4 13.2 -8.1%
Wheat
7.0 7.3 11.4 15.5 11.3 10.3 -9.2%
Rice
1.6 1.8 2.1 3.2 3.0 2.9
-4.1%
Feed
crops
24.6 29.4 42.3 58.9 50.2 48.0 -4.3%
Corn
18.5 22.9 34.1 48.6 42.0 40.3 -4.1%
Other
Grains
1.4 1.3 2.2 2.7 2.3 2.0
-10.7%
Hay
4.7 5.1 6.0 7.5 5.7 5.6
-1.3%
Oil
Crops
18.4 18.5 24.6 28.7 31.9 32.3
1.2%
Soybeans
16.9 17.3 23.1 26.4 30.1 30.5
1.3%
Peanuts
0.8 0.6 0.8 1.2 0.8 0.8


0.0%
Cotton (lint & seed)
6.3
5.5
6.5
5.2
3.5
5.3
52.2%
Other Crops
58.2
59.6
63.1
65.3
63.7
65.4
2.7%
Fruits
and
nuts
17.2 17.3 18.7 19.3 19.0 18.5 -2.7%
Vegetables
17.2 18.0 19.3 21.0 20.6 21.4
3.9%
Al
other
crops
23.8 24.2 25.2 25.0 24.1 25.6 6.0%
Total Crops
116.1
122.1
150.1
176.8
163.7
164.3
0.4%
Meat animals
64.8
63.7
65.1
65.0
58.6
67.2
14.6%
Cattle & calves
49.3
49.1
49.8
48.5
43.8
48.6
11.1%
Hogs
15.0
14.1
14.8
16.1
14.4
18.1
25.4%
Sheep & lambs
0.6
0.5
0.5
0.4
0.4
0.5
13.4%
Poultry and eggs
28.8
26.6
33.1
36.8
32.5
35.2
8.4%
Broilers
20.9
17.9
21.5
23.2
21.8
24.1
10.3%
Turkeys
3.0
3.5
3.9
4.5
3.6
4.1
14.3%
Eggs
4.0
4.5
6.7
8.2
6.2
6.1
-1.6%
All dairy
26.7
23.4
35.5
34.8
24.3
30.7
26.2%
Other livestock
4.6
4.8
4.9
4.8
4.3
4.4
1.2%
Total Livestock
124.9
118.5
138.5
141.5
119.8
137.5
14.8%
Government payments
24.4
15.8
11.9
12.2
12.3
11.9
-2.7%
Other farm incomeb
14.4
16.8
17.6
21.5
22.0
22.9
4.6%
Total Farm Revenue
279.8
273.2
318.0
352.0
317.6
336.6
6.0%
Source: “Farm Income Briefing Room,” Economic Research Service, USDA, August 31, 2010.
a. Forecast. Change represents year-to-year change between 2009 and 2010.
b. Machine hire, custom work, forest products sales, insurance indemnities, and other farm income.
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U.S. Farm Income

Table 3. U.S. Farm Production Expenses ($ Billions) by Source, 2005-2010F
Change
Item
2005 2006 2007 2008 2009 2010a
(%)
Farm origin inputsa
57.1
61.1
73.4
79.8
77.0
76.5
-07%
Feed
28.0 31.4 41.9 46.9 45.0 43.0
-
4.6%
Livestock
18.7 18.6 18.8 17.5 16.5 18.7

13.2%
Seed
10.4 11.0 12.6 15.1 15.5 14.9 -4.0%
Manufactured inputsb
35.4
37.5
46.3
55.0
49.0
49.2
0.5%
Fertilizer
&
lime
12.8 13.3 17.7 22.5 20.1 17.8
-11.8%
Fuels
&
oils
10.3 11.3 13.8 16.2 10.6 15.5
21.8%
Electricity
3.5 3.8 4.3 4.5 4.6 4.7
2.0%
Pesticides
8.8 9.0 10.5 11.7 11.5 11.3

-2.3%
Total interest charges
11.9
14.4
15.1
15.4
15.2
13.9
-8.1%
Short-term
interest
5.7 6.4 6.9 6.7 6.4 6.3
-
1.3%
Real-estate
interest
6.2 8.0 8.3 8.8 8.7 7.6
-13.1%
Other operating exp.c
71.1
76.9
89.5
93.7
89.5
93.3
4.2%
Repair
&
maintenance
10.3 12.5 14.3 14.8 14.7 15.3
4.2%
Hired
&
contract
labor
23.6 24.2 28.6 29.7 28.7 29.8
3.7%
Custom
work
3.5 3.5 3.8 4.1 3.9 4.0
1.6%
Marketing, storage, etc.
8.9
9.1
10.3
10.1
10.3
10.7
4.0%
Miscel aneous
24.9 27.6 32.3 35.0 31.9 33.5 5.1%
Overhead expensesd
41.8
42.9
44.9
49.0
50.4
51.2
1.6%
Capital consumption
24.9
26.2
27.0
28.7
30.1
30.4
0.9%
Property taxes
8.0
9.0
10.3
10.7
10.4
10.6
1.6%
Non-operator net rent
8.9
7.6
7.6
9.3
9.8
10.2
3.6%
Total Production Exp.
217.4
232.7
269.2
293.0
281.0
284.0
1.1%
Source: “Farm Income Briefing Room,” Economic Research Service, USDA, August 31, 2010.
a. Farm origin inputs include purchases of feed, livestock and poultry, and seed.
b. Manufactured inputs include fertilizers and lime, pesticides, petroleum fuel and oils, and electricity.
c. Other operating costs include repair and maintenance of capital items, machine hire and custom work,
marketing storage, transportation expenses, and other miscel aneous expenses.
d. Overhead expenses include property taxes, net rent to a non-operator landlord, and capital consumption.




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Table 4. Annual U.S. Farm Income Since 2003
($ billions)
Item 2003
2004
2005
2006
2007
2008
2009
2010a
1. Cash receipts
216.1
237.9
241.0
240.6
288.5
318.3
283.4
301.8
Cropsb 110.5
114.4
116.1
122.1
150.1
176.8
163.7
164.3
Livestock 105.6
123.5
124.9
118.5
138.5
141.5
119.8
137.5
2. Government paymentsc
16.5
13.0
24.4
15.8
11.9
12.2
12.3
11.9
Fixed direct paymentsd 6.4
5.2
5.2
5.1
5.1
5.1
4.7
4.8
CCPe 2.3
1.1
4.1
4.0
1.1
0.7
1.2
0.2
Marketing Loan Benefitsf 1.3
3.5
7.1
1.8
1.1
0.3
1.1
0.2
Conservation 2.2
2.3
2.8
3.0
3.1
3.2
2.8
3.1
Ad hoc and emergency
3.1
0.6
3.2
0.3
0.5
2.1
0.6
2.3
All otherg 1.2
0.2
2.1
1.7
1.0
0.8
1.8
0.9
3. Farm-related incomeh
14.1
15.7
14.4
16.8
17.6
21.5
22.0
22.9
4. Gross cash income (1+2+3)
246.7
266.5
279.8
273.2
318.0
352.0
317.6
336.6
5. Cash expensesi
174.5
182.9
192.8
204.8
240.3
261.6
248.5
251.3
6. NET CASH INCOME
72.3
83.7
87.0
68.4
77.7
90.4
69.1
85.3
7. Total gross revenuesj
258.6
294.9
298.6
290.2
339.5
379.6
343.2
361.1
8. Total production expensesk
197.7
207.5
219.8
232.7
269.2
293.0
281.0
284.0
9. NET FARM INCOME
61.0
87.4
78.8
57.4
70.3
86.6
62.2
77.1
Source: USDA, Economic Research Service, briefing rooms: Farm Income and Costs: Farm Sector Income, and Costs: Farm Sector Income, available at http://www.ers.usda.gov/
Briefing/FarmIncome/; U.S. farm income data updated as of August 31, 2010.
a. Data for 2009 are preliminary, 2010 are USDA forecasts.
b. Includes Commodity Credit Corporation loans under the farm commodity support program.
c. Government payments reflect payments made directly to all recipients in the farm sector, including landlords. The non-operator landlords’ share is offset by its
inclusion in rental expenses paid to these landlords and thus is not reflected in net farm income or net cash income. For more information on U.S. farm commodity
programs, see CRS Report RL34594, Farm Commodity Programs in the 2008 Farm Bill, by Jim Monke; for more information on conservation programs see CRS Report
RL34557, Conservation Provisions of the 2008 Farm Bill, by Tadlock Cowan, Renée Johnson, and Megan Stubbs.
d. Direct payments include production flexibility payments of the 1996 Farm Act through 2001, and fixed direct payments under the 2002 Farm Act since 2002.
e. CCP = counter-cyclical payments.
f.
Includes loan deficiency payments (LDP); marketing loan gains (MLG); and commodity certificate exchange gains.
g. Peanut quota buyout, milk income loss payments, and other miscel aneous program payments.
h. Income from custom work, machine hire, agri-tourism, forest product sales, and other farm sources.
i.
Excludes depreciation and perquisites to hired labor.
j.
Gross cash income plus inventory adjustments, the value of home consumption, and the imputed rental value of operator dwellings.
k. Cash expenses plus depreciation and perquisites to hired labor.
CRS-19

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Table 5. Average Annual Income per U.S. Household, Farm versus All, 2003-2010F
($ per household)

2003
2004 2005 2006 2007 2008 2009
2010F
Average U.S. Farm Income by Source








On-Farm Income
$7,884
$13,325
$14,227
$8,541
$11,364
$9,764
$6,866
$9,043
Off-Farm
income
$60,713
$67,279 $67,091 $72,502 $77,432 $70,032 $70,302 $72,627
Total Farm income
$68,597
$80,604
$81,318
$81,043
$88,796
$79,796
$77,168
$81,670
Average U.S. Household Income
$59,067
$60,466
$63,344
$66,570
$67,609
$68,424
na
na
Farm Household Income as Share of
U.S. Avg. Household Income (%)
116%
133% 128% 122% 131% 117% na na
Source: USDA, ERS Briefing Room: Farm Household Economics and Wel -Being: Historic Data On Farm Operator Household Income, at http://www.ers.usda.gov/Briefing/
Wel Being/Gal ery/historic.htm; as of August 31, 2010.
Note: Data for 2010 are USDA forecasts.
Table 6. Average Annual Farm Sector Debt-to-Asset Ratio, 2003-2010F
($ billions)

2003 2004
2005 2006 2007
2008
2009P
2010F
Farm Assets
1,378.8
1,588.0
1,779.4
1,923.6
2,055.3
2,015.7
2,043.5
2,095.6
Farm Debt
175.1
181.9
196.4
203.6
214.1
242.7
245.4
235.0
Farm Equity
1,203.6
1,406.1
1,583.0
1,720.0
1,841.2
1,773.0
1,798.1
1,860.6
Debt-to-Asset Ratio (%)
12.7%
11.5%
11.0%
10.6%
10.4%
12.0%
12.0%
11.2%
Source: USDA, ERS Briefing Room: Farm Household Economics and Well-Being: Farm Business Balance Sheet,, at http://www.ers.usda.gov/data/FarmBalanceSheet/
fbsdmu.htm; as of August 31, 2010.
Note: Data for 2009 are preliminary, 2010 are USDA forecasts.
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Table 7. U.S. Prices and Support Rates for Selected Farm Commodities Since 2004
%
%
change
change
2009
2009
from
from
Loan
Target
Commoditya
Unit
Year
2004/05 2005/06 2006/07 2007/08 2008/09Fb 2009/10Fb
2008/09c
2010/11F
2009/10d
ratee
Price
Wheat
$/bu
Jun-May 3.40 3.42 4.26 6.48 6.78
4.87
-28.2% 4.70-5.50 4.7% 2.75 3.92
Corn
$/bu
Sep-Aug 2.06 2.00 3.04 4.20 4.06 3.50-3.60 -8.9% 3.50-4.10 7.0% 1.95 2.63
Sorghum
$/bu
Sep-Aug 1.79 1.86 3.29 4.08 3.20 3.10-3.20 -1.6% 3.20-3.80 11.1 1.95 2.57
Barley
$/bu
Jun-May 2.48 2.53 2.85 4.02 5.37
4.66
-13.2% 3.55-4.15 -17.4 1.85 2.44
Oats
$/bu
Jun-May 1.48 1.63 1.87 2.63 3.15
2.02
-35.9% 2.15-2.75 21.3 1.33 1.44
Rice
$/cwt
Aug-Jul 7.33 7.65 9.96 12.80 16.80 14.00
-16.7% 10.75-11.75
-19.6 6.50
10.50
Soybeans
$/bu
Sep-Aug 5.74 5.66 6.43 10.10 9.97
9.60 -3.7% 8.50-10.00
-3.6 5.00 5.80
Soybean
oil ¢/lb
Oct-Sep 23.0 23.4 31.0 52.0 32.16 35.50 10.4% 36.5-40.5
8.5 — —
Soybean
meal $/st Oct-Sep 182.9 174.2 205.4 335.9 331.2
310 -6.4% 250-290 -12.9 — —
Cotton,
Upland
¢/lb
Aug-Jul 41.6 47.7 46.5 59.3 47.8
62.5 30.8% 61.0-75.0
8.8 52.00 71.25
Choice
Steers
$/cwt
Jan-Dec 84.8 87.3 85.4 91.8 92.27 83.25 -9.8% 93-95
12.9% — —
Barrows/Gilts $/cwt
Jan-Dec 52.5 50.1 47.3 47.1 47.84 41.24
-13.8% 54-55
32.2%
—
—
Broilers
¢/lb
Jan-Dec 74.1 70.8 64.4 76.4 79.7 77.60 -2.6% 82-84
7.0% — —
Eggs
¢/doz
Jan-Dec 82.2 65.5 71.8 114.4 128.3
103.0
-19.7% 99-101
-2.9%
—
—
Milk
$/cwt
Jan-Dec 16.05 15.14 12.90 19.13 18.29
12.84 -29.8% 15.90-16.10 24.6%
—
—
Source: Various USDA agency sources as described in the notes below.
a. Season average farm price for grains and oilseeds are from USDA, National Agricultural Statistical Service, Agricultural Prices. Calendar year data is for the first year,
e.g., 2000/2001 = 2000; F = forecast from World Agricultural Supply and Demand Estimates (WASDE) August 12, 2010;—= no value; and USDA’s out-year 2010/2011
crop price forecasts will first appear in the May 2010 WASDE report. WASDE reports are available at http://www.usda.gov/oce/commodity/wasde/. Soybean and
livestock product prices are from USDA, Agricultural Marketing Service (AMS): soybean oil—Decatur, IL, cash price, simple average crude; soybean meal—Decatur, IL,
cash price, simple average 48% protein; choice steers—Nebraska, direct 1100-1300 lbs.; barrows/gilts—national base, live equivalent 51%-52% lean; broilers—
wholesale, 12-city average; eggs—Grade A, New York, volume buyers; and milk—simple average of prices received by farmers for all milk.
b. Data for 2008/2009, 2009/2010, and 2010/2011 are USDA forecasts.
c. Percent change from 2008/2009, calculated using the difference from the midpoint of the range for 2008/2009 with the estimate for 2008/2009.
d. Percent change from 2009/2010, calculated using the difference from the midpoint of the range for 2010/2011 with the estimate for 2009/2010.
e. Loan rate and target prices are for the 2009/2010 crop year. For more information, see CRS Report RL34594, Farm Commodity Programs in the 2008 Farm Bill, by Jim
Monke.

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U.S. Farm Income


Author Contact Information

Randy Schnepf

Specialist in Agricultural Policy
rschnepf@crs.loc.gov, 7-4277


Congressional Research Service
22

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