Washington, 18 February 2011

Strong global and domestic demand for U.S. crops should stabilize volatile grain markets and keep U.S. farm income at high levels, said Agriculture Secretary Tom Vilsack on Thursday.

The Agriculture Department forecasts record-high farm income for this year. But production costs are rising as well and high grain prices make feed more expensive for livestock and dairy producers.

Leaders of the House Agriculture Committee cautioned Vilsack during a hearing that a downturn in prices would destroy farm prosperity. A run of good years was punctured in 2009 by global economic turmoil, followed by a rebound.

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