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.