U.S. Dairy Leads Exports Surge and Farm Income Down Again
The U.S. Department of Agriculture is expecting exports to grow to more than $1 billion in 2017 with dairy making up a big chunk of the growth.
The latest USDA export projections look for dairy to grow by $500 million to $5.3 billion.
Other dairy-exporting countries are expecting to reduce their outputs in 2017 which will lead to higher prices around the world and higher U.S. exports.
The $500 million gain will make up about half of the overall U.S. growth.
For a third straight year, net farm income in the U.S. is forecast to decline.
In its November Farm Income Forecast Report, the USDA’s Economic Research Service pegged net cash farm income for 2016 at $90.1 billion, down 14.6% from 2015.
If realized, 2016 net farm income would be the lowest since 2009 in both real and nominal terms.