WASHINGTON-(AgWatch)--The U.S. Agriculture Department (USDA) released two reports Tuesday indicating a strong rural economy and growth in agricultural exports.
The reports showed that after declining more than 20 percent in 2009, all three measures of farm sector earnings experienced a rapid rebound, with raised forecasts for 2010.
USDA projected net cash income to rise more than 23 percent to $85.3 billion--the second highest on record and above its previous 10-year average. Additionally, the report showed net farm income has rebounded, up 24 percent from 2009, when demand for agricultural products fell worldwide due to the global recession. Finally, net value added, at more than $127 billion, is expected to be up more than $15 billion from 2009.
U.S. Ag Secretary Tom Vilsack called the reports encouraging. He said, "They show that while American agriculture has struggled through difficult economic times, the 2008 Farm Bill, the efforts of the Obama Administration--such as the Recovery Act--and the hard work and resilience of America's farmers and ranchers have helped put American agriculture on the road to recovery."
Vilsack said other indicators in the reports point toward a sustainable recovery as well. He said that farm asset and equity values, sector-wide, could increase by more than two percent.
In addition to farm policy, Vilsack credited U.S. ag exports--notably of grains and meat--with helping to drive the economic rebound.
He said, "(Ag exports) help create important income opportunities for producers as well as the off-farm jobs that are so critical for strengthening economies in rural America."
USDA raised its Fiscal Year (FY) 2010 ag export forecast to $107.5 billion, up $3 billion from May and $11 billion from last year. For FY 2011, USDA has projected $113 billion in ag exports.
Vilsack said that every billion dollars in agricultural exports supports over 8,000 jobs and generates an additional $1.4 billion in economic activity.
"As the rest of the American economy climbs out of the recession," he said. "American agriculture is helping lead the charge. As they have time and time again, American farmers and ranchers are stayed resilient and working to support a foundation of economic prosperity for the rest of the nation."
