High worldwide grain demand coupled with lower-than-expected yields means U.S. farmers can look forward to a record-high farm income total from the 2011 crop, according to a new U.S. Department of Agriculture report.

In the Farm Sector Income Forecast released Tuesday (Aug. 30), USDA's Economic Research Service projected the total U.S. farm income will reach $103.6 billion, up 31 percent from last year's total. The previous farm income record was $84.7 billion in 2004.

"These are not just records, but records that are substantially higher than we've seen before," said Chris Hurt, Purdue Extension agricultural economist.

Both crop and livestock revenues are up in 2011, but Hurt said the income totals don't tell the whole story. Input costs are on the rise, as well.

"USDA estimates producers have put 15 percent more into the cost of inputs," he said. "So, we have crop revenues up 20 percent and livestock up 16 percent. That says profit margins expanded in 2011."

Livestock receipt increases were led by a 27 percent increase in dairy and an 18 percent increase in beef cattle.