Strong Farm Income Expected in 2004

The Economic Research Service said that net cash farm income for 2003 was a record $68.6 billion. This was up $17.9 billion from 2002 and it is $7.7 billion above the previous record, which was set in 1997. USDA says that 2004 is shaping up to be a strong year for agriculture.

In addition, crop production is forecast to be very large in 2004, at record or near-record levels for several crops, which will offset some of the recent price decline, so USDA expects that cash receipts will remain strong for 2004 overall.

Livestock markets remain especially tight with cattle and broiler prices expected to be record highs for 2004 and milk prices averaging well above 2003.

Even though feed, fuel and fertilizer prices are up this year, strong cash receipts will likely mean a good income year for farmers again in 2004.

USDA projects record exports of $61.5 billion for 2004.

Cash receipts for 2003 were a record $212 billion, with receipts for crops and livestock up. This was the first time in history that receipts for crops and livestock each exceeded $100 billion in the same year.  Production expenses of farmers rose only 2 percent.