The farm industry in the United States is pretty amazing. Despite the seemingly downfall of the economy, the U.S. farms are still feeding most of the American people. According to a statistical organic farming blog, there are 2.2 million hectares which are being farmed organically (that’s approximately 12,064 farms). 1.6 million of it can be found in the United States.
Before the year ended, the Economic Research Service of the USDA reported the national net income of the farm industry. And according to the data they have gathered, the U.S. farms are really in good shape. It has forecasted $114 billion for the year 2012. Although this is 3.3% lower than last year, still, it’s the 2nd highest total in the history of America.
Not only the income but also the farm asset values. The profitability expectations of investors and lenders hit the high record of $2,540 billion. This exceeded the farm debt of $64.4 billion.
These records occurred even though the United States has been experiencing drought for the past 25 years. The domestic economy is showing slow growth because of this. At the beginning of the year, many experts had predicted that a large portion of the crops and livestocks (corn, soybean, cattle, poultry, dairy and hogs) will be affected—damaged or destroyed—by the continuing drought. However, as the year ended, the otherwise happened. Despite the drought, the 2012 crops and livestock have increased and have given the high income to the farmers of the United States. For example, the Corn Belt and Northern Plains had experienced a 2nd year or record revenues.
However, aside from drought, another problem encountered by the farmers are the increasing expenses due to the decreasing economy. However, it was surveyed that only the livestock producers will be affected by it. But despite this misfortune, the farm prices for feed grains, hay and protein meals had hit the high records last this year. With commodity prices getting high, the Government payments lowered. It recorded only $10.9 billion—this is the second lowest record since 1997.
An organic farming blog concluded that with these data the agricultural sector had a strong 2012 financial position. Of course, this varied from one region to the next. But whatever their numbers are, each region is very commendable for their works in 2012. When experts forecasted that springtime will be the ideal planting condition the farmers around the United States responded early and they even expanded their works. To be specific, last June, the U.S. corn planting reached 95.9 million acres. This is the highest since 1937.
With all these, the U.S. Government is expecting that the farming industry will help a lot not only in the economy of America but also in feeding the whole world in 2013 and in the years to come.