Despite downturn, US farm incomes could set records in 2011 - thanks to corn and grains

The overall economy may continue limping along in 2011, but American farmers could plow their way to record harvests.

Researchers at the University of Missouri predict the state's farmers could take home $3.29 billion next year, surpassing the 2008 record of $3.05 billion, while federal estimates hint at a nationwide farm income surge in the new year.

"We may be seeing some bright spots in the general economy,"said Scott Brown, an economist with the university's Food and Agricultural Policy Research Institute. "But probably not as bright as what we're seeing here in agriculture."

"The general economic downturn pulled us down in 2009, so in 2010 there has been some recovery,"Brown explained. "Looking ahead in 2011, it's a continuation of the positive news we've seen, potentially getting us back to record levels."

Despite the dip in 2009, American corn growers have seen net incomes soar over the past decade, largely because of increased demand from overseas and from federal mandates to use ethanol in gasoline. While corn, for example, sold for $2.25 a bushel in the early 2000s, it costs about $6 now and has reached more than $7.