By NANCY VORIS
Indiana Correspondent WASHINGTON, D.C. — Data were released last week showing record U.S. farm exports and income, despite a season of difficulties.
“This year brought a host of challenges for America’s farmers, ranchers and producers,” said Agriculture Secretary Tom Vilsack. “Hurricanes, floods, drought and other extreme weather have driven thousands of Americans from their homes, destroyed crops and threatened our rural communities.
“But despite the setbacks, American agriculture is thriving, demonstrating again that the men and women who own and operate America’s farms and ranches are some of the most resilient in the world.”
Last week’s Farm Income report showed both net cash income and net farm income are record in nominal terms and, adjusting for inflation, are at their highest levels since the early 1970s. At the same time, total farm debt declined nearly 2 percent.
Vilsack said that accomplishment is a major achievement and a testament to farmers and ranchers who work hard, are innovative and make smart business decisions in challenging times. They are making good investments, reducing debt, using resources wisely and taking advantage of opportunities in new markets, both foreign and domestic, he said.
Farmers are also working with USDA and other partners to expand opportunities to sell their products regionally and in their own communities.
“Making these sorts of connections – so a farmer can sell to a local school, hospital or a family just a few dozen or hundred miles away – helps keep wealth right here in America, and is creating good-paying jobs in our rural communities,” Vilsack said.
A new forecast of U.S. agricultural exports confirmed “Grown in America” products remain in high regard and high demand in the rest of the world. The current U.S. export forecast for fiscal year 2011 is $137 billion – $22 billion higher than the previous record set in 2008 and $28 billion above 2010. Exports for 2012 look to remain equally strong.
Taken as a whole, the United States is in the midst of experiencing the three best years in its history in terms of agricultural exports. Strong exports have enabled agriculture to remain one of only a few sectors of the U.S. economy to enjoy a trade surplus, Vilsack said.
This year’s surplus is projected at $42.5 billion, a record, and next year should be $32 billion, the third-highest.
Vilsack said the USDA hopes to maintain and expand that level of production with a commitment to agricultural research and development, removing trade barriers, maintaining a strong safety net for farmers and helping expand local and regional food systems.
“The export forecast also highlights why we must move forward with pending trade agreements,” he said. “Congress can help U.S. farmers and ranchers maintain a competitive advantage and help to keep jobs here at home by ratifying the South Korea, Colombia and Panama agreements.”
When fully implemented, estimates are that those agreements will add more than $2 billion per year to our economy and support thousands of additional jobs in the U.S.
The latest export data are available at www.fas.usda.gov/data.asp and the latest farm income data are at www.ers.usda.gov/briefing/farmincome |
