Saturday, July 3, 2010

Farm Picture

(click on image to enlarge)

The Federal Reserve regularly publishes a "Flow of Funds Report", which is available at:

There is a lot of meat in this report. For instance employee compensation fell in 2009. What is not shown is that men between the age of 25 and 65 have an unemployment rate of 22%, which does not include those working reduced hours or part time. And people wonder why farmers are still hanging on - there are no jobs.

What is shown in the above graph is that farms, all farms, lost net investment in two out of the four years prior to the financial collapse. Out of the six years shown, only two were positive.

For comparison the U.S. Bureau of Economic Analysis states: " Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) increased $116.9 billion in the first quarter, compared with an increase of $108.7 billion in the fourth quarter."

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