Farm Business Economics Report, 1996

For farmers, particularly crops farmers, 1996 was a very good year, as reflected in farm sector income accounts. Farm sector income accounts for 1996 show that net value added by the agricultural production sector increased 25 percent ($19 billion) from net value added in 1995. Final agricultural sector output, the value of the sector’s output of commodities and services before expenses, rose $22.5 billion in 1996, powered by a $16.9-billion jump in the value of crop production. Higher output, generally favorable prices, and a modest 3-percent rise in intermediate consumption outlays boosted net value added. The value of final crop output rose because yields were high under favorable production conditions and prices were exceptionally favorable in the first half of the year and remained strong right through harvest. Final livestock output also contributed, with a gain in production value of over $4 billion between 1995 and 1996. These are some of the highlights of this report, which provides data and commentary on the income and finances of the farm sector at the national and State level, and estimates of production costs for major field crops, livestock, and dairy.