USDA Crop Receipts Forecast Below Deere’s Outlook

The USDA updated its February projections for 2010 U.S. farm crop receipts and increased its outlook for farm revenue and income.

- Farm cash receipts were raised and is now +6% vs. February +2% forecast. Total receipts were down 10% in 2009. According to Robert McCarthy, analyst for RW Baird, farm cash receipts are typically the best predictor of tractor demand.

- Deere outlook assumes $317 billion cash receipts (+7%) vs. the comparable $314 billion USDA forecast.

-Crop receipts seen unchanged (with corn down), compared with Deere's +3% growth forecast.

- Livestock receipts forecast to increase 15% in 2010, up from previous +12% estimate.

- Net farm income is now expected to increase 24% in 2010 (to $77 billion), up from the previous +12% forecast but still 11% below the 2008 peak.

Source: Ag Equipment Intelligence