ERS says two stories to tell about cash receipts
The USDA’s Economic Research service says their latest projections for crop and livestock cash receipts in 2020 tell two different stories.
The ERS expects total cash receipts for animal and animal products to decrease almost six-percent, or 9-point-7 Billion dollars.
ERS Senior Economist Carrie Litkowski says that would put them at their lowest value since 2009 when prior values are adjusted for inflation, “Receipts for cattle, calves, dairy, broilers and hogs are all expected to decline in 2020 because of lower prices. Receipts for broilers are expected to see the largest dollar and percent decline falling $6.7 billion, or 24% in 2020.”
Cash receipts for crops are higher, “After falling in 2019, total crop receipts are forecast to increase three-percent or $6.5 billion. And this is being led by increases in receipts for fruits, nuts, soybeans, vegetables and melons which are expected to offset declines for other commodities.”
Litkowski says total net cash receipts across the board projected to fall $3.2 Billion, a decrease of one-percent.
ERS increased the net cash farm income projections for 2020 because of large government payments for coronavirus relief and the increase in commodity prices this fall.