The Department of Agriculture has estimated that the net farm income has risen over 25% in the last year. This trend has certainly occurred in Indiana, where state officials confirm the larger national trend, projecting a 25% increase in state farm incomes. Driven up by increased grain prices, Purdue University economist Chris Hurt claims that grain prices will drive state farm income to over $3 billion.

However, Decatur farmer Eugene Berning argues against excessive optimism in the face of these record profits. Berning believes that increased farm costs will offset much of the increased profit. “That 25 percent they’re talking about isn’t going to hold because prices for fertilizer, fuel and gas are going to go up,” Berning claims. Rex Coomer, a fellow Hoosier farmer, agrees, stating, “Whenever you think you have a little more money, everybody ups their prices and that’s from landowners who want more rent to feed prices from companies.”

Indiana Farm Bureau President Don Villwock understands these complaints. “Unfortunately, that’s just the nature of agriculture,” he said. “The landlords, farm equipment, fertilizer and other costs usually go up. They don’t let us have a profit for very long.” He is quick, however, to point out the benefits that farming has on the Indiana economy, particularly Indiana State Department of Agriculture reports linking every dollar in direct wages and income from farm, food and forest workers to over $2.5 that flow back into the local economy

This article courtesy of Farm Plus Financial.  To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting . 

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Written by: Justin Ellison / Farm Plus Staff Writer