I am sorry about wrong impressions I have left with my June 30 column about farm income.
Primarily, there is a factual correction: I quoted a source who had stated that net farm income includes family costs. Strictly speaking, NFI doesn't include that. Farmers play by similar rules to other self-employed people in America, notes Andrew Swenson, the North Dakota State University economist who created the report.
"In reality, a salary of about $157,000 (plus $35,000 of benefits) would be equivalent of $192,000 NFI, and this does not include the cash flow considerations of principal payments on machinery and land the farmer must meet," Swenson says.
Additionally, I fully realize that farmers put in long hours during the cropping season to accomplish the annual miracle of crop production, as well as the commitment it takes to market the crop and plan for the next one.
My intended general theme was not to insult anyone, but to emphasize the history we're making -- how exceptional 2007 was and how good 2008 is looking, despite the increases in production costs.
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Believe me, I am truly happy about that. I hope farmers are, too.
-- Mikkel Pates
