Minnesota farm income dropped sharply in 2009, report shows

Median net farm income dropped 63 percent in 2009 among more than 3,000 Minnesota farms, a new joint report by the Minnesota State Colleges and Universities system and University of Minnesota Extension shows.

The median net farm income for the combined groups of producers was $33,417 in 2009, down from $91,242 in 2008. The median means half of the producers earned more and half earned less. Net farm income is used for living expenses, income taxes, retirement and business reinvestment.

“Minnesota’s farmers faced some formidable conditions last year,” said Richard Joerger, director of the Minnesota State College and Universities system’s farm business management education programs. “The drop in income was driven largely by reduced profits for nearly all livestock producers, higher costs for crop producers, and large reductions in the value of their crop and livestock inventory.”