Will We See Increased Farm Community Spending In Coming Months?

Crop producers are experiencing record levels of revenue and increases in crop land values.

At a time when the U.S. jobless rate is 9.6 percent and home prices are weakening, this year’s farm income may top the $87.3 billion reached in 2004, while cropland values will rise as much as 10 percent.

This will mean farm communities may experience increased spending during the coming months.

"It will be a phenomenal year for farm income,” said Michael Swanson, a Minneapolis-based senior economist at Wells Fargo & Co., the largest U.S. agricultural lender. “We are not going to rebuild inventories in one year. This will take several years. Farmers are already running flat out, and it will take time for supply to catch up with rising demand."