Crop receipts are expected to be slightly higher, as the price spikes in grains and oilseeds that took place in the second half of 2010 will still be felt in 2011. Livestock receipts are forecast to be higher in 2011, with prices for cattle and hogs having largely recovered from their lows in 2009. Nonetheless, net incomes of red meat producers will go down, as higher feed costs are felt.
Overall expenses will increase in 2011, in particular costs related to field crops. Unit costs for fertilizer, seeds, and pesticide are expected to rebound while quantities purchased will increase as unseeded/flooded acres on the Prairies are put back into production. Program payments will decrease in part because AgriRecovery assistance related to flooding was paid only in 2010.
Although aggregate net cash income and average net operating income in 2011 are forecast to drop by 13%, and 11%, respectively, they follow a record year and in both cases will remain higher than the average for 2005-2009.
Besides net farm income, the Farm Income Forecast contains other indicators that measure producers' economic well-being. Those indicators suggest a positive situation. Average total income of farm families, which includes-non farm income, is forecast to reach $109,216 in 2011. At the same time, average net worth per farm is expected to reach $1.6 million, a 44% increase over five years.