Every January a bunch of people who are smarter than me (except one, who shall remain nameless) get together and present a series of talks on the status of Wisconsin agriculture. They cover everything from credit to cranberries. In days gone by, this report was available only in booklet form. More recently, each author is a part of a webcast that can be viewed live over the internet on the designated January date. It can also be retrieved and watched anytime afterward in the event someone has an information craving or, in some cases, a bout with insomnia. If you prefer to take the report into the bedroom or bathroom, a 50-page written document is also available.

     There is no arguing that tracking progress, or lack thereof, has value. At the same time, what’s true of the greater whole will not always be true of every individual part. For example, just because overall farm net worth went up in Wisconsin in 2011, it doesn’t mean every farm’s net worth increased. Nevertheless, getting a handle on the general health of agriculture is a good idea and what follows is a small sampling of the report’s highlights: 

• Net farm income in Wisconsin increased to $2.4 billion in 2011, which was $350 million more than 2010 and set a new all-time record (the previous record was set in 2007). The 2011 net farm income was nearly three times that of 2009.
• Overall farm production costs in 2011 were about $1 billion dollars more than 2010. The largest percentage cost increases were for feed (+23%), fertilizer (+30%), seeds (+27%), and land rent (+15%).
• The Wisconsin farm balance sheet was stronger at the end of 2010 than at the beginning, and it will improve again in 2011. At the beginning of 2011, the debt to asset ratio was a very favorable 0.11.
• Wisconsin milk production in 2011 was similar to 2010. Cow numbers were slightly higher and milk per cow was about the same. Domestic milk consumption was held back by the general economy but this was overcome by record dairy exports.
• Like 2011, the expectation is that there should be plenty of money available to lend to farmers in 2012 if borrowers can meet the basic credit standards of lenders.
• USDA projects an average U.S. corn price in the 2011/12 marketing year of $6.40 per bushel. This would eclipse the previous record set in 2010/11 by more than $1.20 per bushel. That U.S. price would translate to a Wisconsin season average price of for 2011/12 of about $6.25 per bushel.
• Given an election year in 2012, it’s not likely that we will see a new federal Farm Bill. The thought is that the current bill will be extended into 2013 and new legislation will be debated at that point. Look for farm payments to decrease in the new Farm Bill.