Net farm income to be record high in 2011
Every expense category is forecast to increase in 2011. Feed is expected to rise $9.2 billion; livestock and poultry purchases, $2.4 billion; fertilizer and lime, $5.1 billion; and fuels and oils, $3.2 billion. Seeds, miscellaneous expenses, total interest expenses, repair and maintenance, and net rent to nonoperators should each be up more than $1 billion.
The increase in expenses will affect crop and livestock farms differently. The principal expenses for livestock farms are expected to increase about 18 percent, while the principal crop expenses are expected to increase 15 percent. In addition, since the value of crop production is expected to rise more than the value of livestock production, the rise in livestock-related expenses will impinge on net incomes of livestock farms more than crop farms.