Agriculture continues to outperform in 2010 and be one of the bright spots in a very uncertain economy. The USDA now estimates that net farm income will rise 24% in 2010 due to higher returns for soybeans, cotton, and livestock producers. The department also raised its estimates of U.S. farm exports due to strong demand for U.S. grain due to the drought in Russia and Eastern Europe and China’s unexpected transition to a net corn importer.
“Today’s reports are encouraging news. They show that while American agriculture has struggled through difficult economic times…the hard work and resilience of America’s farmers and ranchers have helped put American agriculture on the road to recovery,” said Agriculture Secretary Tom Vilsack.
We see today’s report as a first step in the global agriculture boom. Rising farm income and cash receipts translates into more equipment purchases, higher fertilizer use, and the desire to increase production numbers.
Read the full article here on Agweb.com.
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