THE FOOD AND AGRICULTURAL POLICY RESEARCH INSTITUTE WILL DELIVER A 66 PAGE REPORT TUESDAY TO CONGRESS THAT INCLUDES A 10 YEAR BASELINE AND THE ECONOMIC POSSIBILITIES FOR LIVESTOCK, CROPS, AND BIOFUELS. PROJECTED NET FARM INCOME WILL INCREASE IN THE NEXT TWO YEARS DUE TO STRONGER LIVESTOCK PRICES, BUT THE 2010 FARM INCOME WILL ONLY RECOVER ABOUT ONE THIRD OF THE GROUND LOST LAST YEAR. NET FARM INCOME FELL BY MORE THAN 30 BILLION IN 2009 DUE TO SHARP DECLINES IN CASH RECEIPTS THAT WERE NOT OFFSET ENTIRELY BY PRODUCTION COST DROPS. IN THE LIVESTOCK SECTOR, THE ALL-MILK PRICE IS EXPECTED TO INCREASE BY MORE THAN 4 DOLLARS PER HUNDREDWEIGHT IN 2010--UP 12 DOLLARS FROM LAST YEAR. PORK PRODUCERS ARE EXPECTED TO APPROACH BREAKEVEN PROFITS IN 2010 AFTER A DISASTROUS YEAR IN 2009. ECONOMIST SCOTT BROWN SAYS THE SPEED OF THE RECOVERY HINGES ON THE SPEED OF ECONOMIC RECOVERY BOTH AT HOME AND ABROAD. BEEF DEMAND IS EXPECTED TO STRENGTHEN. THAT FACT AND TIGHT BEEF SUPPLIES COULD RETURN PROFITS TO THE BEEF INDUSTRY. COW-CALF PRODUCERS COULD ACHIEVE BREAKEVEN PROFITABILITY IN 2010. THE BEEF SUPPLY IS NOT EXPECT TO TURN UP UNTIL 2014. THE UNIVERSITY OF MISSOURI'S FOOD AND AGRICULTURAL POLICY RESEARCH INSTITUTE BASELINE REPORT WILL BE POSTED ON LINE FOLLOWING ITS PRESENTATION TO CONGRESS.
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