U.S. farm income likely to fall 6.5% year-over-year to US$91.7B in 2012 due to rising cost of animal feed, diesel fuel, USDA says
February 13, 2012
– On Feb. 13, the United States Department of Agriculture announced that domestic farm income will most likely fall 6.5% from a revised US$98.1 billion to $91.7 billion in 2012 year-over-year due to rising costs, Bloomberg reported the same day.
The value of domestic crops in 2012 will most likely rise 3.1% year-over-year to $204.9 billion as crop acreage hits its highest level since World War II, and revenue from the sale of livestock will rise 0.6% year-over-year to $165.7 billion, said the USDA.
According to the USDA, farm expenses such as animal feed and diesel fuel will rise 3.7% year-over-year to $235.1 billion.
More specifically, the USDA said that in 2012, fertilizer expenses will be relatively constant at $27.6 billion, while expenses from fuel will increase 1.3% year-over-year to 17.2 billion.
Pesticide expenses will increase 4.5% year-over-year to $11.3 billion in 2012, while electricity will rise 5.4% to $4.8 billion, said the USDA.
The USDA reported that feed costs will most likely rise year-over-year 3.5% to $59 billion and seed expenses could potentially rise 0.7% to $17.8 billion.
From the year that began on Oct. 1, agricultural exports could potentially decrease from $137.4 billion year-over-year to $132 billion, while food inflation may fall from 3.7% in 2011 to 3.5% in 2012 due to increased food supplies, said the USDA.
According to the USDA’s Feb. 13 report, U.S. government subsidies could potentially increase 4% to $11 billion.
The USDA’s Feb. 13 forecast—its first for 2012—is scheduled for revision in August.
The primary source of this article is Bloomberg, New York, New York, on Feb. 13, 2012.