American farmers are going to be producing more corn and soybeans than expected this year, which will mean lower expected prices for the crops, according to a new USDA forecast that boosted the department’s predictions for yields in both crops.
Farm earnings are likely to fall sharply this year despite the $16 billion in COVID-19 assistance payments now being distributed, and farmers’ income is likely to drop again in 2021 without additional government aid, according to a widely followed forecast of the agricultural economy.
Without government relief, some analysts are sharply lowering their estimates of net farm income because of the impact of the COVID-19 crisis on agricultural markets, with the livestock sector and corn growers bearing much of the hit.
The Trump administration’s trade assistance payments have become so critical to farm profits that some growers could take a hit to their income if the program is discontinued in 2020 because of a trade deal with China.
Canada is developing biofuel incentives similar to California's and could provide a valuable new market for the U.S. biodiesel industry, which is struggling to increase exports to other countries due to countervailing duties and other barriers.
WASHINGTON, Sept. 6, 2017 – Economists with the University of Missouri’s Food and Agriculture Policy Institute (FAPRI) lowered projections of corn and soybean prices in their latest 10-year forecast of the farm economy