Indiana farmers this year are expected to see a 25 percent increase in farm income. A local economist expects Indiana’s total 2010 farm income to reach just above $3 billion.
A drought in Russia and a wet season in Canada has reduced the world’s wheat crop. Economist Chris Hurt at Purdue University in West Lafayette says that helped drive up grain prices and bring more money to Midwest crop farmers.
“So with these higher incomes and probably substantially higher incomes, first category we’re going to see is spending on machinery. So this will be essentially plowed back into their own farm operations,” Hurt said.
Hurt says he expects farming communities to benefit from the extra cash flow. But he says not all Midwest farmers will see higher incomes this year. He says animal farmers took a hit from the high grain prices.
