Farm Income Down in Western Region, According to Rabobank Farm & Ranch Survey

NEW YORK, Oct. 2 /PRNewswire/ -- Less than 5 percent of farms saw an
improvement in income this year, a drastic downturn compared to the same time
last year when one in four farms saw better year over year income, according
to Rabobank's Farm & Ranch Survey. In the Western Region, 76 percent of
producers said their income is worse when compared to last year.

"Western farmers' outlook mirrors that of farmers and ranchers across the
United States," said Bob Dingler, Senior Vice President and Managing Director
of Ag for Rabobank N.A. "However, they understand the cyclical nature of the
industry and can adjust their risk management strategy, purchasing decisions,
and output to help weather this economic downturn."

Western Regional Conditions

The survey was developed to gauge the confidence of farmers and ranchers
across the United States. However, some regional differences stand out,
including:

-- A little more than one third of Western producers felt the cost of
inputs have remained the same as last year.
-- When looking ahead to next year's income, 40 percent of Western
producers with incomes greater than $1 million feel their income will
be
worse.
-- All Western farmers with incomes greater than $1 million are concerned
about the U.S. agricultural economy.

-- Producers with revenues greater than $1 million find their job as a
farmer more difficult.

Agricultural Economy

Concern about the U.S. agricultural economy remains with 95 percent of those
surveyed falling within the range of somewhat concerned (34 percent), very
concerned (30 percent) to extremely concerned (31 percent). Moving forward,
more farmers expect the economy to continue to worsen (54 percent).

Of those surveyed, 75 percent believe their answers regarding their outlook
would be different if the general economy was better.

Business Conditions

Regardless of acreage, U.S. producers are more distressed regarding their
income. Approximately 40 percent believe their income will be worse next year,
when compared with previous surveys. However, 27 percent of respondents have
some optimism that their income will improve.

Additionally, higher input costs continue to be the most frequently mentioned
economic challenge facing U.S. farmers. Three in five farmers rank it the
primary factor that has contributed most to the economic challenge they are
confronted with. Additionally there is an increasing concern regarding
reduced demand (55 percent) and weather conditions (57 percent).

Risk Management

Nearly all surveyed (94 percent) are concerned about price fluctuations. What
seems somewhat positive is that the degree of concern has lessened - those
extremely concerned dropped from 62 percent to 48 percent. To manage that
concern, 45 percent have implemented or plan on investing in risk management
or marketing strategies.

Expansion Plans

Hiring plans are relatively unchanged, with three-quarters of farms still
expecting hiring levels to be the same as last year. However, farmers who are
concerned with the economy will reduce their employee base.

Additionally, 66 percent of those surveyed have no plans to purchase farm
equipment. However, farms in operation 40 years or more are planning to buy
equipment compared to newer farms.

In terms of land purchases, nine in 10 plan to keep farms the same size. The
only change in land seems to be a slight increase in those who plan to sell
land - 5 percent vs. 2 percent in the survey earlier this year.

Methodology

The study was conducted to gauge farmers' confidence among target farming
regions in the United States. An independent survey company conducted 455
computer-assisted telephone interviews in the first half of August 2009.
Farmers who owned or operated a farm grossing $250,000 or more in one of three
U.S. census regions - the Midwest, Southern and Western United States - were
targeted.

Note to editors: Regional information and further data is available at
www.rabobankamerica.com/survey.

The premier bank to the global food and agriculture industry, Rabobank is a
global financial services leader providing institutional and retail banking
and agricultural finance solutions in key markets around the world. From its
century-old roots in the Netherlands, Rabobank has grown into one of the
largest banks worldwide, with more than $850 billion in total assets and
operations across 40 countries. Rabobank is the only private bank in the world
with a triple A credit rating from both Standard & Poor's and Moody's, and is
ranked among the world's safest banks by Global Finance magazine. In the
Americas (www.RabobankAmerica.com), Rabobank is a leading financial partner to
the entire American food and agribusiness industry and is a specialist in
sophisticated, customer-driven solutions in the Global Financial Markets and
Corporate Finance arenas. Rabobank also provides retail and commercial banking
services in California; leasing; and real estate lending, operating loans,
input financing and crop insurance to American agricultural producers, input
suppliers and agricultural manufacturers.

SOURCE Rabobank

Sean Dowdall (California-specific questions), +1-916-865-8301,
Sean.Dowdall@Rabobank.com; or Heather McElrath (outside California),
+1-212-309-5181, Heather.McElrath@Rabobank.com