USDA forecasts 2011 U.S. net farm income of $94.7 billion, up 20% from its revised 2010 forecast of $79 billion, and 41% above the prior 10 year average of $67.1 billion. USDA noted the $94.7 billion forecast is “the second highest inflation-adjusted value for net farm income recorded in the past 35 years.”

USDA’s 2011 forecast of cash receipts of $340.7 billion is up 9% from revised 2010 levels, driven by a 14% increase in crop receipts — to $194.9 billion — and a 3% increase in livestock receipts to $145.8 billion. The agency is also forecasting 2011 direct government payments to decline to $10.6 billion, from $12.2 billion in 2010, while farm production expenses are forecast to increase 7% to $307.5 billion.