The USDA Economic Research Service projects that net farm income for U.S. producers will be up 11.8% this year from 2009. That's an upward move of $6.7 billion to $63 billion. Still, that forecast is $1.4 billion below net farm income earned during the previous 10 years. Net cash income is forecast to be up 7.8% to $76.3 billion. Also, net value added income is expected to be $14.2 billion, up $6.1-billion from 2009.
ERS expects total expenses to remain about the same as last year. Costs for fertilizer and feed are down from 2009. Meanwhile, the 2010 forecast is for a rise of about 2% in cash receipts from sales of farm commodities and Government payments are forecast to change little in 2010.
ERS reports that in 2010, the economic conditions for livestock producers are expected to improve, while the economic conditions for crop producers are expected to deteriorate slightly or stabilize.
Soybean receipts are expected to experience the second largest decline, $1.8 billion, and sales of corn for grain, the largest single source of crop cash receipts for U.S. farmers, is expected to decline slightly in 2010.
Despite U.S. cotton demand expected to be the lowest since 1988, and exports forecast at their lowest levels since 2001/02, cotton cash receipts are predicted to be a bright spot for U.S. farming in 2010.