Washington--Farm profitability is up as U.S. farmers are experiencing one of the best years in decades. According to USDA data, farm profit is expected to reach $100.9 billion this year, while cash-on-hand to pay farm expenditures is also expected to hit the $100 billion mark. Says USDA, it will be the first time that both farm profit and expenditures have done so. Further, crop and livestock sales are expected to make history with crops predicted to exceed $200 billion in sales, while livestock sales increases are predicted to make double-digits.
“We're just experiencing the best of times,” said Bruce Johnson, an agricultural economist at the University of Nebraska in Lincoln. “It's a story to tell.”
Illinois corn and soybean farmer Dale Hadden estimates his crops to be worth 10 percent to 15 percent more this year, allowing him to pay off a year’s worth of a seven-year tractor loan. Iowa corn and soybean farmer Jeff Reinking was able to pay on land debt and update his combine to a newer model.
But, not all farmers are having the same luck. Commodity prices were driven up because of drought in parts of the country, say some farmers.