It was too dry. It was too hot. The economy was bad. A storm took down a lot of corn.
Don't believe any of that this year. The American farmer will produce record corn and soybean crops amidst more exports and higher prices. In addition, Russia's wheat crop has wilted this summer. Russia is the world's third largest wheat exporter, but it has stopped wheat exports until next year's harvest. US wheat farmers are benefiting as a good wheat crop is being met with greatly increased export sales and higher prices.
Usually for farmers, a bad economy and record crops add up to lower prices. In 2010 however, growing world demand for grains and bad crops in places like Russia have more than taken up the extra supply and is actually pushing the price of grains higher. It is good business for US agriculture to have more to sell and also to get a higher price for it.
Business is so good actually, that farm income is projected to be up at least 24% this year. How would you like to get a 24% raise in the midst of this deep recession?
Don't begrudge them, however. The financial fortunes of farmers tend to ebb and flow in big cycles. For instance, you were a lot better off a real estate or stock investor in the 1990's than a farmer. Looks like the farmers will be spending a bit more money this year. Hmmm what do farmers like to buy and from whom and who do they bank with?
