Reflecting national trends, Kentucky’s farm economy did extremely well in 2011, with farm cash receipts likely to exceed $5 billion for the first time (up from $4.4 billion in 2010), estimate agricultural economists with the University of Kentucky (UK) College of Agriculture.

Official U.S. Department of Agriculture 2011 cash receipts for Kentucky won’t be released until summer 2012, but Will Snell, PhD, UK extension professor, said the team of UK economists is seeing improvement in returns on corn, soybeans, wheat, cattle, horses, hogs, and dairy. Net farm income is expected to rebound back above $1 billion in 2011, compared to $780 million in 2010.

Growth was seen across the nation, despite a severe drought in some areas of the country. The USDA projects U.S. net farm income will reach a record high of $100.9 billion, up 28% over last year and 50% higher than the 10-year average.

Snell and UK agricultural economists Craig Infanger, PhD, and Kenny Burdine, MS, agree that the force behind the improved financial returns in agriculture is the boom in exports over the past two years and the strong demand for grains for biofuel production