USDA announced yesterday that it expects 2009 farm income to drop 20 percent from last year, thanks to lower commodity prices. However, net farm income is still projected at 9 percent higher than the 10-year average.(quote)
The global economic recession will weigh on the livestock sector, according to USDA officials, with export demand slumping for meat and dairy products. A steep drop in milk prices may prompt an 11 percent slump in the value of livestock commodities, the agency adds.(quote)
I can assure you "net income" on dairies was not up in '08. Prices were good for half the year then tanked and feed went thru the roof at the same time. I doubt 25% of the dairies in Texas even have a positive cash flow, let alone making any money. There will be more and more go out of business in the state on their own. It just don't work anymore.