Net farm income is forecast at $103.6 billion for 2011, up $24.5 billion for a rise of 31 percent from 2010. All three measures of farm sector earnings (net farm income, net cash income, and net value added) are forecast to rise more than 20 percent in 2011.
Net farm income and net cash income are both projected to exceed $100 billion for the first time in 2011. The 2011 forecast of net farm income is the second highest inflation-adjusted value recorded since 1973. Crop receipts are expected to increase by $33.6 billion, with corn, wheat, hay, cotton, and soybeans receipts expected to show the largest percentage gains. Total expenses are forecast to increase $32.5 billion (11.4 percent) in 2011, exceeding $300 billion for the first time.
The value of the farm sector's equity (net worth) is forecast to rise 7.7 percent in 2011. The estimated increase in farm sector equity is largely due to an estimated 7.1-percent increase in the value of farm business real estate. Farm sector debt is estimated to decrease by 1.9 percent in 2011. The forecast debt-to-asset ratio of 10.4 percent would match 2007's historical low as would the 11.6 percent debt-to-equity ratio.
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