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Widmar: Farm economy generally positive despite uncertainties
Agriculture economist David Widmar is generally positive about the farm economy despite its uncertainties. Widmar, a co-founder of Ag Economic Insights, tells Brownfield record 2020 farm program payments softened the farm economy’s downward spiral. Direct federal farm payments will help in 2021, but not to the extent of the $46 billion paid in 2020.
“We’re thinking in the neighborhood of $18 billion,” Widmar told Brownfield Ag News, “which would still be historically high.”
Widmar estimates 2021 net U.S. farm income at $90 billion, assisted by government payments as well as by current higher commodity prices.
“This environment is much different, [with] much stronger commodity prices as we’re heading into 2021,” he said. “That’s going to be a big boost to the farm economy, especially if there’s any type of weather hiccup, especially abroad.”
Commodity market strength, combined with low interest, might heat up land values in the coming months, according to Widmar, adding that uncertainty in trade relationships has become positive since the strengthening of China’s purchases in the past few months.
