ISSUE 3
JUNE 1996

NDSU: New Bill Offers Better
Farm Income Until 1999

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Prairie Grains is the
official publication of
the Minnesota
Association of
Wheat Growers,
North Dakota Grain Growers Association,
South Dakota Wheat,
Inc., and the
Minnesota Barley
Growers Association.

 The new farm bill will boost N.D. farm income from now until 1999, but beyond then farm income would have been better under the old farm bill, had it remained in place, according to an NDSU study.

An average-sized N.D. farm would have netted $80,000 in income this year under the old 1990 act, but under the new bill will net $93,000, according to the study. That same farm in 1999 will net about $70,000 under either act, based on the study's commodity price predictions.

As the new century begins, however, net farm income will begin dropping under the new legislation compared to what it would have been under the old. In 2002 the medium-sized representative farm will net $65,000 under the new farm bill, but it would have netted $73,000 under the old legislation.

Wheat and barley growers will fare better than corn growers under the new law, in comparing the value of transition payments versus estimated deficiency payments.

The study indicates that by the end of the forecast period in 2002, average farm debt-to-asset ratios will be somewhat higher and net farm income somewhat lower under the new farm bill than they would have been under the old farm legislation. Land values in 2002 will be about the same under the new bill as they would have been under the 1990 bill.

Copyright Prairie
Grains Magazine
June 1996