Ag Secretary Encouraged By USDA Reports

Agriculture Secretary Tom Vilsack has released the following statement in response to two USDA reports that show the strength of the overall rural economy and growth in agricultural exports:

"Today’s reports are encouraging news. They show that while American agriculture has struggled through difficult economic times, the 2008 Farm Bill, the efforts of the Obama Administration – such as the Recovery Act – and the hard work and resilience of America’s farmers and ranchers have helped put American agriculture on the road to recovery.

"After declining more than 20 percent in 2009, all three measures of farm sector earnings experienced a rapid rebound and are forecast to rise in 2010:

  • Net cash income is expected to rise more than 23 percent to $85.3 billion – the second highest on record and above its previous 10-year average;
  • Net farm income has rebounded, up 24 percent from 2009, when demand for agricultural products fell worldwide due to the global recession;
  • Net value added, at $127.3 billion, is expected to be up $15.2 billion from 2009, and remain 17.7 percent above its 10-year average.

"Other indicators also point to a sustainable recovery: farm asset values are projected to increase by 2.5 percent in 2010, as are equity values. And average farm family household income is projected to reach more than $81,000 in 2010 – up 5.8 percent from 2009.

"And this recovery is sector-wide. While an increase in the value of livestock production accounted for much of the upward movement, the value of dairy production rose by 26.2 percent; the value of meat animal production is up 14.6 percent, and the value of poultry and egg production rose 8.4 percent. And commercial farms and intermediate farms are all expected to have higher average net cash income in 2010 than they did in either 2009 or 2008. Rural residence farms will have lower net cash losses.

"A host of factors contributed to this strong and rapid recovery. Successful implementation of the 2008 Farm Bill passed by the U.S. Congress as well as the Obama Administration’s Recovery Act have provided strong support for American agriculture:

  • We have maintained a strong safety net for the agricultural economy by providing farmers and ranchers across America with direct support, disaster assistance, technical assistance, support to struggling industries, and access to credit. At the same time, we worked to build a stronger agricultural economy for future generations of Americans by investing in research, maintaining fair markets, and promoting marketing policies that will keep American agriculture the most productive and successful in the world.

"Another factor driving this recovery is an increase in income from exports. Today, USDA is excited to announce that we are raising our forecast for agricultural exports for Fiscal Year 2010 to $107.5 billion – the second highest year on record. This a $3 billion increase from the May forecast, and an $11 billion increase over last year. And Agriculture is one of the only major sectors of the American economy with a trade surplus – expected to be $30.5 billion this year.

"What’s more we expect to sustain this important progress. The outlook going forward into Fiscal Year 2011 is even more promising, showing $113 billion in agricultural exports.

"Increased agricultural exports – especially of grains and meat – have helped drive this rebound. It helps create important income opportunities for producers as well as the off-farm jobs that are so critical for strengthening economies in rural America. In fact, every billion dollars in agricultural exports supports over 8,000 jobs and generates an additional $1.4 billion in economic activity.

"And USDA – as part of President Obama’s National Export Initiative — has helped support these export numbers:

  • The President’s fiscal year 2011 budget proposal for USDA makes an additional financial request to enhance USDA export promotion activities.
  • And USDA has made strong progress to help increase exports. Under a new trade strategy, we are looking at countries based on their position on an agricultural market continuum.
  • As we pursue this new approach, we have maintained our commitment to an open rules-based international trading system that will benefit both consumers and suppliers of agricultural products around the world. We have continued to work through negotiations to remove barriers that prevent U.S. agricultural producers from getting open and fair access to foreign markets. And because we have full confidence in their quality and competitiveness, we will continue to push U.S. products to foreign markets.

"And we can’t forget the importance of the underlying values of rural America and its farmers and ranchers to the resilience of the agriculture sector:

  • American agriculture entered the recession with very little debt relative to the rest of the economy – and farm sector debt is expected to decrease in 2010;
  • A strong belief in the value of hard work positioned our famers capitalize on the economic recovery; and
  • American agriculture has improved on its incredible productivity and adaptability – embracing new research and innovation like few other sectors of the American economy.

"From day one, the Obama administration has focused on reversing nearly a decade’s worth of failed economic policies that helped to cause the worst recession since the Great Depression. We’ve taken steps to move the economy forward and get our people back to work while rebuilding a strong economic foundation to ensure future prosperity.

"As the rest of the American economy climbs out of the recession, American agriculture is helping lead the charge. As they have time and time again, American farmers and ranchers are stayed resilient and working to support a foundation of economic prosperity for the rest of the nation."

The 2010 Farm Income Forecast is available here.

(Source: USDA)

Leave a Reply

Featured Stories
Crop InputsVilsack To Deliver Commodity Classic Keynote Address
February 19, 2015
The secretary will deliver a keynote address to several thousand farmers and ag allies during the event's General Session, to be held Friday, February 27, in Phoenix, AZ. Read More
Ribbon cutting at 2015 National Farm Machinery Show
Matt Hopkins5 Key Takeaways From The 2015 National Farm Machinery Show
February 14, 2015
Celebrating its 50th anniversary, the largest indoor farm show in the country didn't disappoint with the latest in technology and trends on full display. Read More
Biocontrols Conference and Tradeshow
Crop InputsReal-World Solutions Highlight First Biocontrols 2015 Conference And Tradeshow
February 13, 2015
Practical experience from some of the most successful growing operations and influential advisers and biocontrol suppliers in the U.S. highlight the agenda for the first-ever Biocontrols 2015 Conference and Tradeshow. Read More
Cornfield near Sioux City Iowa
FertilizerThe Nitrogen Outlook For 2015
February 9, 2015
Plenty of factors affected the market during 2014 — and many of these will continue to play a role during 2015 as well. Read More
Top 100 Articles
CropLife 100Cooperative CHS Returns $518 Million To Owners
February 23, 2015
The 2015 cash return to owners is based on CHS net income of $1.1 billion, the company's second highest on record. Read More
corn field
CropLife 100The Andersons’ Humic DG Now Available In Canada
February 13, 2015
The Andersons, Inc. Turf & Specialty Group has announced its Humic DG product is now available to customers in the Canadian turf, agriculture and horticulture markets. Read More
Farmer on tablet
CropLife 100Southern States Co-op: An Inside Look At Our Aerial Imagery Program
February 8, 2015
Now is as good a time as any to explore the basics of what a retail aerial imagery program looks like today. Read More
CropLife 100Wilbur-Ellis Inks Satellite Imagery Agreement
February 3, 2015
Wilbur-Ellis Company has reached an agreement with Planet Labs to bring satellite imagery to the AgVerdict software platform. Read More
CropLife 100The Andersons Starts Venture Capital Subsidiary
January 26, 2015
The Andersons has established Maumee Ventures, a venture capital subsidiary designed to foster promising innovations that strategically align with the company’s core businesses. Read More
CropLife 100CHS Partners With Northern Partners Coop On Fertilizer Warehouse
January 21, 2015
In addition, the two companies will form a joint venture to build and operate a grain barge loading facility that will handle corn, soybeans and wheat for export through the CHS terminal at Myrtle Grove, LA. Read More
Latest News
Luckey Farmers, Inc.’s Berkey Farm Center
Industry NewsLuckey Farmers’ Berkey Branch Certified In 4R Nut…
February 26, 2015
The 4R Nutrient Stewardship Certification Program has announced Luckey Farmers Inc.’s Berkey Farm Center in northwest Ohio has been added to its growing list of nutrient service providers to achieve certified status. Read More
Crop InputsWinField Unveiling NutriVision Technology, Ascend Dry F…
February 24, 2015
New for 2015 are NutriVision Technology, a unique tool for monitoring in-season plant nutrient availability, and Ascend WSG plant growth regulator, a new dry formulation of Ascend plant growth regulator. Read More
FertilizerNew Formulation Of NutriSphere-N Protects High Volume U…
February 24, 2015
Verdesian Life Sciences is launching NutriSphere-N HVTM, a new polymer formulation of the proven NutriSphere-N Nitrogen Fertilizer Manager that protects high-volume applications of UAN. Read More
EquipmentIowa Ag Secretary Northey Names Hagie Water Quality Lea…
February 24, 2015
Iowa Secretary of Agriculture Bill Northey has named Hagie Mfg. as a recipient of the Secretary’s Water Quality Initiative (WQI) Leader Award. Read More
FungicidesEvito Fungicide Gives Canadian Wheat Growers New Diseas…
February 24, 2015
EVITO fungicide from Arysta LifeScience North America gives Canadian wheat and barley growers a new option for disease control. Read More
Eric SfiligojThe Commodity Classic Turns 20
February 23, 2015
Two decades in, this annual gathering of all things agriculture has become a must-see event. Read More
CropLife 100Cooperative CHS Returns $518 Million To Owners
February 23, 2015
The 2015 cash return to owners is based on CHS net income of $1.1 billion, the company's second highest on record. Read More
ManagementCropLife Retail Week: On The Road Edition
February 20, 2015
Editors Paul Schrimpf and Eric Sfiligoj discuss their recent trips to the National Farm Machinery Show in Louisville and the Read More
Crop InputsLand O’Lakes Acquires FLM+ Assets
February 19, 2015
FLM+ will become a wholly owned subsidiary of Land O'Lakes, Inc., and the company will retain its employee base after closing of the deal, which is scheduled for the second quarter of the year. Read More
Seed/BiotechUnited Suppliers, Stine Seed Form Marketing Alliance
February 19, 2015
The new alliance will greatly expand sales opportunities for Stine Seed with the United Supplier Seed Link Owners. Read More
Crop InputsVilsack To Deliver Commodity Classic Keynote Address
February 19, 2015
The secretary will deliver a keynote address to several thousand farmers and ag allies during the event's General Session, to be held Friday, February 27, in Phoenix, AZ. Read More
Crop InputsSoybean Storage Tips
February 19, 2015
On-farm storage of soybeans requires some special considerations compared to corn. Read More
Monsanto Sign
Crop InputsBioAg Alliance Delivers Promising Field Trial Results
February 19, 2015
In its first full year of field trials, the BioAg Alliance reported that the top 10 microbial strains tested in corn and soybeans showed very promising results. Read More
National Farm Machinery Show overview
EquipmentNational Farm Machinery Show Attendance Up By 16K
February 18, 2015
The 2015 event saw the second highest attendance total of all time as 310,589 attendees that included exhibitors and agribusiness professionals traveled to the Kentucky Exposition Center to participate in the nation’s largest indoor ag trade show. Read More
EquipmentHagie Captures Three 2015 AE50 Awards
February 18, 2015
Hagie Mfg.’s Cover Crop Interseeder (CCI), High Speed Toolbar (HsTB) and STS with Tracks were presented with 2015 AE50 outstanding innovations awards at the 2015 ASABE Agricultural Equipment Technology Conference in Louisville, KY. Read More
CPS Truck door
ManagementOhio AgriBusiness Association Announces New And Re-Elec…
February 17, 2015
Crop Production Services, The Andersons among agribusinesses represented on OABA's 2015 Board of Directors. Read More
Crop InputsPlatform Specialty Products Finalizes Arysta Acquisitio…
February 17, 2015
The closing of this acquisition marks Platform’s third acquisition within the agrochemicals operating segment following the acquisitions of the Agriphar Group and Chemtura AgroSolutions in 2014. Read More
National Farm Machinery Show 50th Anniversary
Eric SfiligojThe National Farm Machinery Show Turns 50
February 17, 2015
The largest indoor farm trade show continues to impress visitors after five decades. Read More