Skip to comments.U.S. farm income to plunge 38 percent in 2009: USDA
Posted on 08/28/2009 9:48:25 PM PDT by TigerLikesRooster
U.S. farm income to plunge 38 percent in 2009: USDA
By Christopher Doering
Thu Aug 27, 1:16 pm ET
WASHINGTON (Reuters) U.S. farm income this year was forecast to plunge 38 percent to $54 billion due to lower commodity prices for crops and livestock, the Agriculture Department said on Thursday.
Grain and livestock prices falling from record highs set in 2008 means farmers will see earnings slump by $33.2 billion in 2009 from last year's near record net farm income of $87.2 billion.
The 2009 forecast was $9 billion below the 10-year average of $63.2 billion in net farm income.
The drop comes amid a global recession that has suffocated demand for many U.S. commodities, pushing prices well below their 2008 averages.
"With economic conditions deteriorating worldwide, demand for exports has tailed off, with few options available to expand marketing elsewhere," the USDA said in its report.
"Sharply declining demand in 2009 has forced farmers to accept prices that are lower than were expected earlier in the year when production plans were made," it said.
(Excerpt) Read more at news.yahoo.com ...
On the other hand, what happened to ethanol project? That is supposed to keep grain price high.
I don’t see if the possible passage of the Malarkey Crap and Tax (Carbon) bill is factored into the equation?
The Ethanol input is bogus.
Worldwide population up, ag commodities down.
Oil less than 1/2 it's peak a year ago. Gold is stalled.
Real property in the US down 30+%, with some areas down 60%.
Everything is getting cheaper, smaller and weaker...'cept Uncle Sam.
Even state, county and municipal governments are getting smaller...or, at least, reducing their rate of growth. Much, much more to come for them.
How much of this is to do with not having enough water, environmental laws or, bio fuels?
I bet 80% is caused by the Congress.
Their greenie weenie green fuel mandates sucking up all available water and creating demand spikes. Can’t pump water in the central valley due to their little smelt that isn’t even big enough to eat.
I bet some crops even did better than last year, soy beans?
“On the other hand, what happened to ethanol project? That is supposed to keep grain price high.”
In KY, things are so bad...we drank it! ‘Shine is ‘shine, no need to waste it putting it in your car!
How come the prices of food are going UP...
This article infuriates me. Months ago we read milk cows were being destroyed to keep the price of milk from plummeting. Chickens and baby chicks too. And just days ago, cherry growers were told to let 40% of their crops rot! This is done purposefully. Obama is absolutely positively going down the exact road FDR did. He made a bad situation drastically worse. Look ahead a year,2 and 4...where will prices be when the shortage was a planned one....You can bend a lot of will when you control the food and the health rationing, eh?
Wow, this thread suffers from some astoundingly stupid canned responses.
Not from you Tiger, others.
Those were tart cherries, I think that was legit. Nature just overproduced, I heard they wanted to keep the prices high so they wouldn’t collapse. This depressed income a little.
But this Central Valley stuff, shutting down the entire valley and letting farm after farm just die. Trees that were 30 years old, dieing, this is just insaneville.
It’s not deflation. Prices are cheaper than a year ago but back then we where in a speculative frenzy the likes of which has never been seen before or since. Prices returning to earth, but still high by historic standards, isn’t deflation.
will start commodity speculation. Grain and livestock price will shoot up.
No it won’t. The price may be up but no one wants actual delivery of the product, the commodities market is just a gambling game that people play these day.
From what my parents told me about the Depression, food was plentiful but no one could afford much of it. Many crops were destroyed by farmers because to harvest them and let them remain unsold was cheaper than just turning them under. It becomes a matter of losing say 2k per acre if the crop is harvested or 1K per acre if it is plowed under.
While all of them were dirt poor, my mother and father-in-law often went with one meal a day, my father and mother-in-law had food because they had family in agriculture.
Maybe cherries are a luxury food
Must be demand dropped off because they were very cheap this summer.
Cheaper than usual. The regular cherries not the tart ones
So cheap I threw some in the freezer
Hopefully the farmers in Iowa who gave us Obama will go broke.
Farmers I know are hurting.
Low produce prices but high fuel, fertilizer and feed costs.
Plus regulations raising their cost of production.
The same thing happened in the Klamath River Basin, Oregon, about 10 years ago.
The purpose is to drive people from rural areas to the cities, the easier to control them.
Did it work?
Did the water get turned back on?
I know it was shut down for a while but after a year I didn’t hear anything.
If there is still a problem, I wouldn’t mind coming over there and help dig a well or something.
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