Farm Income Drop Could Top $20 Billion

A new economic analysis says crop and livestock farmers are in for much lower incomes in 2020.

A DTN report says crop farmers are projected to see an $11.85 billion in revenue during 2020, while livestock farmers are projected to drop a combined $20.24 billion in receipts this year. Early analysis from the University of Missouri’s Food and Agricultural Policy Research Institute is showing crop and livestock farmers combined income dropping by $32.09 billion. That means farm income for 2020 will drop by $20 billion once lower input costs and higher government payments are included in the analysis.  

Looking ahead to 2020-2021 crops, the institute is projecting a five-to-ten-percent drop in grain and oilseed prices. FAPRI also sees a 20% drop in livestock prices during 2020. Around the nation, FAPRI said the key unknown is whether the coronavirus creates a “V-Shaped” recession that creates a quick recovery, or an economic disruption that lasts into next year.

“The speed and duration of the recovery are also a great source of uncertainty,” FAPRI said in its analysis. “The GDP levels for 2021 and possibly later could continue to be below the levels forecast before the emergence of COVID-19.” The institute also says it could take consumers much longer to recover, which would affect energy, manufacturing, and agriculture.

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