Despite lower commodity prices and the ongoing pandemic, farmers may end up with higher incomes this year.
“Net farm income now is forecast at $102.7 billion dollars, up almost 23% from last year,” said USDA Chief Economist, Rob Johannson.
He added USDA’s new income forecast is showing farm receipts from sales of commodities is actually down $12 billion dollars from last year.
So, why the increase?
He noted nearly all of that bump up is explained by government payments. Which Johannson said could amount to $37 billion dollars; $16 billion from CFAP alone. In addition, almost $6 billion from the Small Business Administration’s Paycheck Protection program, and there are disaster payments trade mitigation payments
“And on top of that we have conservation payments, ARC/PLC payments,” Johannson continued.
So, how much of farm sector 2020 income will be from government payments? Johannson said about 41%, but those payments are expected to bring farm bankruptcy down this year.
If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail [email protected]