Farmers looking at record income in 2011
Anderson says economic boost will help everyone.
Brock Anderson thinks Nebraska is the garden spot of the country with farm income predicted to rise 35% over last year.
“It’s going to be a good year,” he said.
High commodity prices and floods, drought and hail that devastated crops in other corn- and soybean-producing states have helped boost grain prices.According to the Nebraska Business Forecast Council, farm income in 2011 is forecast at a record $5.4 billion. Expectations are that it will remain strong for the next two years.
Growth in income will help everyone in Gothenburg and the state, Anderson said.
He, along with father, Britt, raise irrigated and dry land corn, soybeans and wheat north of town.
“People will be buying more and paying more for jobs,” he said. “It will mean income for a lot of different people, not just the farmers themselves.”
However Anderson said he expects production expenses, like fertilizer, equipment, land values and cash rent to rise accordingly.
The extra income, Anderson said, will be used to help pay off debt.
“Low interest rates have really helped the farm industry,” he said.
Anderson said he and his dad think the record income will hurt producers as the 2012 Farm Bill is fashioned.
“We don’t want them to take the subsidies out of crop insurance,” he said, explaining that he isn’t worried about the elimination of direct payments but doesn’t want to have to pay more for premiums.
Looking at the 2011 harvest, Anderson said yields for irrigated corn are probably not going to be has high as expected but dry land yields appear good because of ample moisture.
In fact, he said dry land yields the past three years have averaged 140 to 150 bushels per acre compared to 70 to 100 bushels four years ago.
Harvest conditions have also been ideal.
Anderson said their soybeans are picked and they expect to be finished with corn harvest in about three weeks.
Cash prices for corn Tuesday, according to All Points Cooperative were $6.18 a bushel and $11.54 for soybeans.
Anderson added that All Points Cooperative, with a new distributor and other equipment, is handling grain well this harvest season.
The elevator was damaged by an explosion in December of 2010.