PPB September 2018

America’s farmers are facing tougher economic conditions every year. The economic outlook presented by the USDA estimates net farm income will remain flat over the next 10 years; accounting for inflation, it will likely fall. Numbers for 2018 show a decrease in net farm income to $59.5 billion, the lowest level since 2006. Increases in productivity and output are outpacing food demand and population growth, resulting in falling prices. However, exports are forecast to increase to $142.5 billion for fiscal year 2018, up $3 billion over last year—livestock, dairy and poultry exports bring in the most revenue. Source: USDA In April 2018, U.S. farm operators hired 648,000 workers—a four percent drop from 2017. But, wages rose in that same time period by four percent. Workers received an average wage of $13.72 per hour: field workers received an average of $12.72, while livestock workers earned $12.78 per hour (an increase of two percent). Most hired farm workers found jobs in the Cornbelt states —Illinois, Indiana, Iowa, Missouri and Ohio—while fewer workers were hired in the Appalachian II region—Kentucky, Tennessee and West Virginia. U.S. Crop Production 2017 Corn – 14.6 billion bushels (65 pounds each, shelled) Sorghum – 364 million bushels (50 pounds each, seed) Rice – 178 million cwt (hundredweight, 100 pounds per unit) Soybeans – 4.39 billion bushels (60 pounds each) Cotton – 21.3 million bales (480 pounds each) 99% amount of U.S. farms classified as family farms 52% amount of U.S. land used for agricultural production 40% amount of U.S. farmland rented over the past 25 years 31% amount of farmland owned by non-operator landlords in 2014 1% amount of nonfamily farms, which produce 10 percent of the total value of U.S. agricultural output Market Snapshot GROW | SEPTEMBER 2018 | 57