Thread: U.S. Farm Profit Plunging on Lower Crop, Dairy Prices

U.S. Farm Profit Plunging on Lower Crop, Dairy Prices


by Alan Bjerga
Bloomberg - 2009-08-27



Profits for U.S. farmers will plunge more than expected this year, dropping 38 percent from 2008 as the recession erodes demand for crops, livestock and dairy products, the government said.

Net farm income will sink to a seven-year low of $54 billion, down from a February forecast of $71.2 billion and last year’s estimated $87.2 billion, the U.S. Department of Agriculture said today in a report. Farm-product sales are dropping faster than costs for energy and feed, the USDA said.

The price of corn, the biggest U.S. crop, has plunged 46 percent in the past year, hog farmers lost an estimated $4.5 billion since September 2007, and dairy herds are being culled because of a milk surplus. Profits have declined for grain processors including Cargill Inc. and makers of farm equipment such as Deere & Co. and Agco Corp.

“Hogs were devastated by the H1N1 flu, and dairy isn’t getting off the mat,â€

Sounds like rather than bailing out AIG and GM, we should be bailing out our food and water supply first and foremost. After all, who can afford to buy an insurance policy or a new car when the population is without food or water and the store shelves are empty?