According to a survey conducted by the Federal Reserve Bank of Kansas City, farm income is expected to rise in the Midwest and western states.
The survey found that feed costs are decreasing, so farmers will have to spend less money on feed.
While feed is lowering in price, crop prices fell in the first quarter as well. This caused farm income to decrease in the first quarter, but incomes are expected to recuperate by the end of the second quarter. Some producers may even see higher numbers than before the fall. One reason feeds costs are lower is the backstock of corn from farmers waiting for better crop prices.
The price of feed in 2010 was one of the many factors attributed to the current state of the agricultural industry. The lower prices is a sign that things are slowly improving.
The survey was conducted in the 10th District which includes Kansas, Nebraska, Oklahoma, Colorado, Wyoming, New Mexico and parts of Missouri.
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