U.S. Farm Income

"According to USDA’s Economic Research Service (ERS), national net farm income—a key
indicator of U.S. farm well-being—is forecast at $91.7 billion in 2012, down $6.5 billion (6.5%) from the record total of $98.1 billion achieved in 2011. Record revenues from crop markets (forecast up 0.7%, from 2011’s record level), coupled with continued strength in livestock markets (down 0.1% from 2011’s record), are expected to be offset a 4% ($12.5 billion) increase in input costs to account for the lower forecast for overall net returns.

The major drivers behind a second year of strong farm income projections are the outlook for near-record U.S. agricultural exports of $132 billion in 2012, following record exports in 2011 (projected at a record $136.3 billion), and continued strong crop prices driven in part by sustained demand from the U.S. corn ethanol industry..."