FAPRI-MU projects down farm income into 2021 from pandemic
Farm incomes are expected to decline through 2021, according to an updated report from the Food & Agricultural Policy Research Institute.
FAPRI-MU director Pat Westhoff says although total federal spending on farm support and conservation in this fiscal year is a record, prices are lower across the board since the outbreak of COVID-19 and that weighs heavily on farm income. Westhoff tells Brownfield Ag News, “Even with those very large payments, we’re looking at net farm income being off by $3-Billion this year. Another measure, cash flow measure – net cash income shows a drop of $18-Billion dollars this year.”
FAPRI-MU expects, if there are no further government payment programs, both net farm and net cash incomes to decline again in 2021, with net farm income falling below $80 Billion dollars.
But even with a fairly rapid recovery, livestock markets will be somewhat depressed for several years to come.
Interview with Pat Westhoff below: