← FarmCPA Home

2012 US Net Farm Income At a New Record Even With The Drought!

By: | Trackback URL | 1 Comment

August 28th, 2012

In a report from the USDA issued today, they project that net cash income from farming will increase by 3.4 percent from 2011 to a new record of $122.2 billion.  Net value added is expected to increase by $5.9 billion to $172.6 billion.

Due to the market effects of the drought and the expected large crop insurance payments, these increases are expected to be much greater than any resulting increases in input costs or livestock losses.

Gross farm income is expected to hit a new record of about $450 billion.  This number was as low as $300 billion just five years ago.

Total production expenses are expected to increase by $18.6 billion or about 6 percent over 2011.  It is interesting how fertilizer prices always seems to increase with grain prices.

Unlike 1988 when little revenue protection crop insurance was available, this year more farmers will benefit for these and other crop insurance policies which will keep net farm income high.

Paul Neiffer

Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a partner with CliftonLarsonAllen in Yakima, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. In fact, Paul drives combine each summer for his cousins and that is what he considers a vacation. Leave a comment for Paul. If you would like to leave a comment for Paul, follow the link above, however, please make sure to include your email address so that he can reply to your comment (your email address will not automatically show up).

More Posts - Website

Follow Me:
Twitter

← FarmCPA Home

1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Subscribe to this blog by:

Previous Posts

Events

View upcoming speaking engagements and other networking events for Paul Neiffer and CliftonLarsonAllen’s agribusiness team.

See All

  • Twitter Feed

    Netflix down $110 in after hours trading. Sign of momentum stocks going flat? 4 days ago

    Getting ready to go to LA to defend my son and I APU Alumni golf tournament victory last year. I may have to carry him again 4 days ago

    Everybody worried about bubble in land market. They should worry about stock market bubble 5 days ago

    77 degrees on October 8. Perfect. 1 week ago

    Somehow IRS listed several counties in Iowa as drought stricken. Hard to believe after all the rain this year 3 weeks ago

    Just saw a bighorn sheep eating grass in the bank next to the freeway. Less than 30' from my car. 1 month ago

    After 82 days in a rental car my wife has talked me into a cruise. We leave Thursday for Miami. Can't wait 1 month ago

    Will final ear weights set a new record. If so final corn yield will be going higher (unless we get an early hard freeze) 1 month ago

    Getting Train the Trainer info on the new Dairy Margin Protection program today in Denver. Learning a lot so far 1 month ago

    Has the chatter on an early freeze disappeared or is it just dormant 1 month ago