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Balanced Reporting. Trusted Insights.
Monday, June 27, 2022
Bolstered by strong commodity prices, U.S. farm earnings should stay well above historic levels this year even as producers grapple with high production costs and the government’s pandemic relief phases out, the Agriculture Department reports.
Measures of farm income this year will reach their highest levels since 2013 and 2014 on the surge in government aid through coronavirus relief and trade assistance, the Agriculture Department says.
Some big 2021 unknowns persist, including how COVID-19 will continue to disrupt markets and demand, whether government payments will continue to be robust and whether or not U.S. farmers can pivot to gathering more of their income from the marketplace.
The latest forecast from the University of Missouri’s Food and Agriculture Policy Research Institute projects farm earnings will be lower this year than what USDA economists are expecting.
Net farm income should increase by about 10 percent in 2019 but will still be well below the average level for the past two decades and far under recent peaks, according to USDA's latest forecast.
The Department of Agriculture drastically increases net farm income projections after releasing the complete list of tables for their upcoming Agricultural Projections Report, expected to be released mid-March.
USDA today forecast net farm income for this year at $65.7 billion, up from a February projection but down $9.8 billion, or 13 percent, from 2017, when the broad measure of farmland profits increased nearly 23 percent.
