Wednesday, August 29, 2012

What drought? US Farmers Eye Record Profits




Talk about totally illogical, U.S. farmers are heading for their most profitable year on record despite the worst drought in half a century as high grain prices and payouts from a federal crop insurance program compensate for a smaller harvest, the Financial Times writes.

Holy Hannah we don’t advocate letting these good folks suffer and starve but net farm income will reach $122.2 billion in 2012, the highest-ever nominal profit and the second highest in inflation-adjusted terms after 1973, the U.S. Department of Agriculture (USDA) said in its first forecast since drought spread across the corn belt.

The expected 4 percent increase in average farm profit from 2011 comes as agricultural states, including Iowa and Ohio, have emerged as battlegrounds in the November presidential election and lawmakers have failed to renew legislation outlining agricultural subsidies ahead of its expiry on September 30….

Read all about it at http://www.cnbc.com/id/48822850

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