Sunday, October 26, 2008

Next up at the trough...

Farmers have been doing well for a number of years (see graphic below). For example , this year U.S. net farm income is projected at USD 95.7 billion, up 10.3% from last year and up 65% from two years ago (per U.S. Agriculture Department estimates).... However, with the costs of some inputs rising (e.g. fuel, fertilizer, seed, etc.) and some crop prices weakening the outlook is a little less rosy.

Prediction: if there is a slight downturn in the next 12 to 24 months expect to see copious lamentations about the fate of the family farm and Congress rushing to the 'rescue.'

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