Farm income projected to remain high in 2021


Farm income projected to remain high in 2021

Farm income is projected to drop by 10 percent in 2021 with ad hoc payments expected to be cut in half.

But ag economist David Widmar with Ag Economic Insights said 2021 is still projected to be a strong year for ag income.

“2020 is the fourth highest net farm income [year] going back to the 1970s and then, of course, 2021 is going to be slightly below that but we’re well above the long-run average,” he said.

The USDA’s estimate for 2021 farm income is $111 billion, more than $20 billion above the long-run average.

But Widmar tells Brownfield there is a big split in the USDA’s projections.

“The value of production for animals and livestock are going to be somewhere kind of in a ten-year low here in 2021,” Widmar said. “Where, crops are going to see some of the highest value of production since about 2014.”

He said overall ag production expenses are at a 10-year low. Widmar cautions the USDA’s numbers are just early estimates that could change greatly.

David Widmar Interview