Farmers will not "for several years" enjoy a repeat of their 2008 boom, with the health of foreign economies as well as America's having a big influence on the revival in profits, the Federal Reserve has said.

US farm incomes will fall by 20% this year to a total of roughly $70bn, the Federal Reserve System's Kansas bank said in a report on agricultural demand.

Farms will be squeezed by a 10% drop in revenues, while costs will drop by only 5%.

"Despite the lower feed costs, livestock producers are struggling to post profits for the year because revenues have fallen more sharply," the report said.

"Crop producers are expected to enjoy positive profit margins, albeit narrow ones."

Crucial exports

A rebound will depend "heavily" on economic recoveries both in the US, which will repair consumption for red meat and corn-based ethanol, and abroad, raising demand for American exports.

"A major driver of farm profits is export activity," the report said.

"Stronger farm incomes will depend on export activity, global incomes and the value of the dollar."

The US economy was likely to post growth of 2.5-3.3% next year, "relatively tame" in comparison to other recoveries. Growth in the year after a recession typically reaches 4%.

The global economy was likely to show a similar trend, with growth rebounding "moderately" in 2010.

The report added that these recoveries were likely to foster a rebound in the US agricultural economy in 2010, "but the recovery may not reach the record highs of 2008 any time soon".