Production Down, Income Up in 2011
We posted a couple weeks ago about production for almost all of the major crops in 2011 being down from 2010. Even though, production was down, income for most of these crops seems to be up in 2011 from 2010. A recap of the major crops are as follows:
- Corn $76.5 billion up from $64.7 billion (18% increase)
- Soybeans $35.8 billion down from $37.5 billion (4.5% decrease)
- Wheat $14.4 billion up from $12.8 billion (12.5% increase)
- Hay $17.8 billion up from $14.7 billion (21% increase)
- Cotton $7.3 billion unchanged from $7.3 billion
- Potatoes $4.0 billion up from $3.7 billion (8.1% increase)
As you can see, almost all crops yield more sales volume than 2010 with lower production. This year, my guess is that we might see higher production, yet lower sales.
We will recap some of the income numbers by states during the rest of this week.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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