In case farmers had forgotten, last year’s grim financial results continue to surface. A new report shows that median net farm income dropped 63 percent in 2009 among more than 3,000 of the state’s farms. It’s the work of the Minnesota State Colleges and Universities system and University of Minnesota Extension.
The median net farm income for the combined producer groups under review was $33,417 in 2009, down from $91,242 in 2008. The median means half of the producers earned more and half earned less. Net farm income is used for living expenses, income taxes, retirement and business reinvestment.
“Minnesota’s farmers faced some formidable conditions last year,” says Richard Joerger, director of the Minnesota State College and Universities system’s farm business management education programs. “The income drop was driven largely by reduced profits for nearly all livestock producers, higher costs for crop producers and large reductions in the value of their crop and livestock inventories.”
The analysis used data from 2,324 farms that participated in system’s farm business management programs and 95 members of the Southwest Minnesota Farm Business Management Association. The Center for Farm Financial Management at the University of Minnesota analyzed the data.
You can get a more in depth look at the report, including by animal and crop sectors here.
Source: University of Minnesota