The United States Department of Agriculture (USDA) has released its Farm Sector and Household Income Forecast for 2005, according to which 2005 earnings by US farmers are to reach $64.4 billion, down by $9.2 billion from the record $73.6 billion estimated for 2004 and the second highest on record.

At the same time the department issued 2004 figures, showing an exceptional year for US agriculture. Net farm income was up by 24%, value of production by 12%, net value added by 16% and net cash income by 13%, all registering historic highs. In 2004 the sector contributed a record $118 billion in value-added to the US economy. Both crop and livestock commodities experienced exceptionally favourable market and production conditions, generating a record $235 billion.

USDA has branded 2003 and 2004 as two consecutive years of record high agricultural production, especially in corn and other crops, and unusually profitable years for the farm sector that benefited from high prices for livestock and milk.

Share this story: