projected long term growth in net farm income
DESCRIPTION
Projected Long Term Growth in Net Farm Income. Average Annual Net Farm Income 1980 - 2020. ($ in billions). $100. $83.6B. $80. $61.1B. $60. $48.1B. $40. $29.1B. $20. ' 80 - ' 89. ' 90 - ' 99. ' 00 - ' 09. ' 10 - ' 20. Long Term Growth Drivers - PowerPoint PPT PresentationTRANSCRIPT
Projected Long Term Growth in Net Farm Income
2
Average Annual Net Farm Income 1980 - 2020
($ in billions)
Source: USDA, expressed in nominal dollars
$29.1B
$48.1B
$61.1B
$83.6B
$20
$40
$60
$80
$100
' 80 - ' 89 ' 90 - ' 99 ' 00 - ' 09 ' 10 - ' 20
Long Term Growth Drivers– Income Growth in Developing Countries– Increasing Demand for Biofuels– Technological Advances – Genetics, Crop Production, GPS
Increasing Demand from Developing Countries
3
Household Disposable Income Over U.S. $10,000
Source: Euro monitor, Morgan Stanley Research
– Increasing Household Incomes in Developing Markets Drive Demand for Protein and Grains
– 4 of the Top 5 US Soybean Acreage Counties are in ND– Cass County #1 / Richland County #2
2011 Ethanol Production Capacity in ND
Increasing Demand for Biofuels
– Ethanol Production Drives Demand for Corn Production– US Ethanol Production to Grow From 13.5B Gal to 15B Gal by 2015
Source: Nebraska Energy Office (NEO)
1995 2007 20110
50
100
150
200
250
300
350
400
450
Mill
ions
of G
allo
ns
ND Corn Production 1995-2010
Technological Advances
Source: USDA, NASS
Technological Advances Allow Increased Acres and Yield
1995 2000 2005 20100
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
0
50
100
150
200
250
300
Acres Yield
Tota
l Yie
ld
in M
illio
ns o
f Bus
hels
Ave Corn Yield Increased from 79 bu per acre in 1995 to 132 bu per acre in 2010 due to Technological Advances in Seed Genetics and Production Methods
Since 2000 AG Revenue & Inputs have Increased Over 200%
Ag Economic Impact in ND
– Fuel Provider– Fertilizer Supplier– Seed Dealer
– Chemical Vendor– Vehicle & Equipment Dealer– Employees
AG Inputs
2000 2005 20100.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
ND Ag Revenue ND Ag Inputs
Bill
ions
of D
olla
rs
Source: USDA, NASS