Analysis: Minn. farm income high on the hogs and the crops

Analysis: Minn. farm income high on the hogs and the crops

Paul Walsh
Minneapolis Star Tribune
April 7, 2011

A "bright spot" in Minnesota's economy -- farming -- put up sunny numbers in 2010, with hog and crop farmers leading the way in net profits, according to a report released Thursday.

An analysis from the Minnesota State Colleges and Universities (MnSCU) and the University of Minnesota found that median net farm income in the state was $119,915 among about 2,500 Minnesota farms in 2010. That's up from $33,417 in 2009, when net farm incomes were depressed by low profits in the livestock sector and increased production costs.

"Most Minnesota producers had a good year in 2010," said Richard Joerger, system director for agriculture and business at MnSCU. "Agriculture is one bright spot for the Minnesota economy."

The biggest swing came among hog farms, which earned median profits of more than $265,000. That's a long way from the median loss of $73,000 in 2009.

The report analyzed results from 2,362 participants in the MnSCU farm business management education programs and 97 members of the Southwest Minnesota Farm Business Management Association.

Net farm income is used for living expenses, income taxes, retirement and business reinvestment.

For crop farms, the median net farm income increased to $161,441 in 2010, up from $60,128 in 2009, the analysis found. Increased profitability was driven largely by the run-up in crop prices at year-end.

"Most of the increase in crop farm earnings was reflected in increased values in inventory on producers' balance sheets at the end of the year," said Dale Nordquist, extension economist with the University of Minnesota's Center for Farm Financial Management.

Among dairy farms, the median net income jumped to $57,853 in 2010 from slightly more than $2,000 in 2009.

Details of the annual report are available at www.finbin.umn.edu.