ML-Implode News - US Farmers Eye Record Profits

U.S. farmers are heading for their most profitable year on record despite the worst drought in half a century as high grain prices and payouts from a federal crop insurance program compensate for a smaller harvest.
Net farm income will reach $122.2 billion in 2012, the highest-ever nominal profit and the second highest in inflation-adjusted terms after 1973, the U.S. Department of Agriculture (USDA) said in its first forecast since drought spread across the corn belt.
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Many farmers in the drought-hit areas abandoned crops and will file insurance claims to cover losses. "Insurance indemnities are forecast to offset the impacts of declining yields associated with the drought," the forecast said.

Of that, the U.S. government would shoulder about $14 billion, they said.

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US Farmers Eye Record Profits