2011 was one of the most profitable years ever for ranches and farms.
The USDA anticipates net farm income rising 31% from 2010 to $103.6 billion. Livestock income rose 15% to $164 billion.
“These are not just records but records that are substantially higher than we’ve seen before,” said Chris Hurt Purdue Extension agricultural economist.
He continued that profit margins expanded in 2011 and debt to asset ratios match historical lows.
The increases in food costs will play a significant role in determining livestock sector profitability in 2012. Feed crop costs are projected to rise 37%.