Farm Production Numbers Expected To Drop

The USDA said last week there are a variety of reasons that this year's net cash farm income is expected to increase $24.7 billion. One help for the farmer's bottom line, this year's $5 billion dollar drop in farm production expenses. USDA's Chief Economist, Rob Johannson, added farmers farmers paid pay higher amounts for some items in 2020.

"Net rent is higher, property taxes are higher, fertilizer costs are higher, labor, feed and pesticides are higher."

But even though farmers spent more on those key items, "They're offset by larger declines in interest expenses, fuel expenses, and livestock purchases." Johannson continued.

It's expected that $343.5 billion will be spend this year on the farm, down 1.5% year over year. And 2020 marks the 6th straight year of farm production expenses dropped.

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