Forecast & Trends
In addition to reporting a record $2.8 billion income for the year, last Wednesday, Deere & Co. reported that its fourth-quarter income rose 46% on a 20% increase in sales and revenues. More importantly, the world’s largest farm equipment maker also raised its 2012 net farm income to $115.7 billion from $111.6 billion it projected in August.
Some analysts are expressing concerns that uncertain global economic growth will lead to a downturn in ag machinery sales in 2012. Despite these fears, Deere raised its outlook for most farm commodity prices for the year ahead. It says it’s also looking for strong net farm cash income for the next year.
U.S. Commodity Price Estimates
|
|
2010-11 |
Previous |
Forecast |
Previous |
Forecast |
|
Corn |
$5.18 |
$5.30 |
$6.40 |
$5.75 |
$5.30 |
|
Wheat |
$5.70 |
$5.70 |
$7.40 |
$7.30 |
$6.60 |
|
Soybeans |
$11.30 |
$11.65 |
$13.00 |
$12.75 |
$11.25 |
|
Cotton |
$0.82 |
$0.81 |
$0.88 |
$0.90 |
$0.75 |
(dollars per bushel, except cotton, which is dollars per pound)
U.S. Farm Cash Receipts
|
|
2010 |
Previous |
Forecast |
Previous |
Forecast |
Previous |
|
Crops |
$173.0 |
$170.9 |
$209.3 |
$207.6 |
$207.7 |
$198.1 |
|
Livestock |
$141.5 |
$141.5 |
$163.1 |
$153.0 |
$157.2 |
$151.9 |
|
Government Payments |
$12.2 |
$12.2 |
$10.7 |
$11.8 |
$9.3 |
$12.3 |
|
Total Cash |
$326.7 |
$324.6 |
$383.1 |
$372.4 |
$374.2 |
$362.3 |
(in billions of dollars)
U.S. Net Farm Income
|
|
2010 |
Previous |
Forecast |
Previous |
Forecast |
Previous |
|
Total Cash Receipts |
$326.7 |
$324.6 |
$383.1 |
$372.4 |
$374.2 |
$362.3 |
|
Other Cash Income |
$21.1 |
$21.0 |
$18.6 |
$21.2 |
$23.0 |
$23.8 |
|
Gross Cash Income |
$347.8 |
$345.6 |
$401.7 |
$393.6 |
$397.2 |
$386.1 |
|
Cash Expenses |
($254.2) |
($254.2) |
($286.0) |
($282.0) |
($288.0) |
($283.0) |
|
Net Cash Income |
$93.6 |
$91.4 |
$115.7 |
$111.6 |
$109.2 |
$103.1 |
