Ag Secretary says America’s farm economy is strong
By Diego Flammini
Assistant Editor, North American Content
Farms.com
After the USDA’s Economic Research Service released its Farm Sector Income Forecast for 2016, Secretary of Agriculture Tom Vilsack commented on the report’s findings.
Despite the forecast indicating a decline in farm income, Vilsack said the report highlights the resiliency of America’s farmers.
"(The) forecast continues to show that the health of the overall farm economy is strong in the face of challenging markets,” he said in a release. “After reaching record highs in 2012-2014, net farm income declined in 2015 and is forecast to decline in 2016, but the bigger picture shows that farm income over the last five-year period reflects the highest average five-year period on record.”
The report’s highlights include:
- Cash receipts are forecast to fall $23.4 billion due to a $23.4 billion drop in animal/animal product receipts.
- A slight gain in crop cash receipts is driven largely by a $5.3 billion increase in oil crop receipts.
- Receipts for turkey, rye, cotton and tobacco are forecast to rise by 10 per cent or more.
- The annual value of U.S. agricultural production is forecast at $403.7 billion, a 5.9 per cent decline from 2015.
- Livestock production is forecast to drop by 13.3 per cent to $168.6 billion.
Despite forecasted declines in some agricultural sectors, Vilsack expressed his confidence that rural America can thrive going forward.
"The future of rural America looks much brighter today, but we must continue to focus on the targeted investments to help the rural economy retool itself for the 21st century,” he said in the release.