Farmers profit despite recession

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A shaky economy and high energy prices during 2011 did not prevent Wisconsin farmers from having a good year, according to UW Madison professor emeritus Ed Jesse.

He said net farm incomes statewide will total around $2.4 billion, about $50 million more than the previous record from 2007. It is also about $300 million more than in 2010.

Jesse says record-high milk prices are the biggest reasons for the increase, with steady milk production from the year before. Record price levels for corn and soybeans were the second-biggest factor.

Jesse said Wisconsin farmers would get about $1.7 billion in corn revenues, which represent half the total value of crops in the Badger State.

However, much of that money will pay off debts that built up during the recession-plagued year of 2009. As for 2012, Jesse says feed costs should be higher and milk prices should be lower.

He estimates farmers will do OK, while the outlook for livestock farmers is more uncertain. Jesse says Wisconsin's net farm income could drop this year by as much as $700 million.

Tags: business, agriculture, wiscosnin, outdoors