Agriculture Secretary Tom Vilsack has released the following statement in response to two USDA reports that show the strength of the overall rural economy and growth in agricultural exports.
"Today's reports are encouraging news. They show that while American agriculture has struggled through difficult economic times, the 2008 Farm Bill, the efforts of the Obama Administration – such as the Recovery Act – and the hard work and resilience of America's farmers and ranchers have helped put American agriculture on the road to recovery.
"After declining more than 20% in 2009, all three measures of farm sector earnings experienced a rapid rebound and are forecast to rise in 2010:
• Net cash income is expected to rise more than 23% to $85.3 billion – the second highest on record and above its previous 10-year average;
• Net farm income has rebounded, up 24% from 2009, when demand for agricultural products fell worldwide due to the global recession;
• Net value added, at $127.3 billion, is expected to be up $15.2 billion from 2009, and remain 17.7% above its 10-year average.
"Other indicators also point to a sustainable recovery: farm asset values are projected to increase by 2.5% in 2010, as are equity values. And average farm family household income is projected to reach more than $81,000 in 2010 – up 5.8% from 2009.
"A host of factors contributed to this strong and rapid recovery. Successful implementation of the 2008 Farm Bill passed by the US Congress as well as the Obama Administration's Recovery Act have provided strong support for American agriculture:
• We have maintained a strong safety net for the agricultural economy by providing farmers and ranchers across America with direct support, disaster assistance, technical assistance, support to struggling industries, and access to credit. At the same time, we worked to build a stronger agricultural economy for future generations of Americans by investing in research, maintaining fair markets, and promoting marketing policies that will keep American agriculture the most productive and successful in the world.
"And we can't forget the importance of the underlying values of rural America and its farmers and ranchers to the resilience of the agriculture sector:
• American agriculture entered the recession with very little debt relative to the rest of the economy – and farm sector debt is expected to decrease in 2010;
• A strong belief in the value of hard work positioned our famers capitalize on the economic recovery; and
• American agriculture has improved on its incredible productivity and adaptability – embracing new research and innovation like few other sectors of the American economy.
"From day one, the Obama administration has focused on reversing nearly a decade's worth of failed economic policies that helped to cause the worst recession since the Great Depression. We've taken steps to move the economy forward and get our people back to work while rebuilding a strong economic foundation to ensure future prosperity.
"As the rest of the American economy climbs out of the recession, American agriculture is helping lead the charge. As they have time and time again, American farmers and ranchers are stayed resilient and working to support a foundation of economic prosperity for the rest of the nation."
The Kansas Department of Agriculture is located in Topeka, Ks. Kansas has a strong agricultural tradition that predates its statehood, and agriculture continues to be a significant contributor to the state’s economic well-being.
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