Net farm income projected lower despite gains in commodity prices
An ag economics professor says net farm income is projected lower this year despite run-ups in commodity prices.
Brad Lubben is with the University of Nebraska-Lincoln. “This captures much of the commodity rally we’ve seen to date. It doesn’t capture what we’ve seen in the most recent weeks,” Lubben says. “We also have to acknowledge the current rally is not the same thing as projecting a season average for farm income in the calendar year ahead.”
He says farm incomes might tick up slightly but government payments to producers are getting smaller while at the same time expenses are rising. “Farm income and cashflow projections for 2021 will be mixed but risk management decisions are as complex as ever, frankly,” Lubben says.
Lubben says the best way for producers to mitigate risk is by educating themselves. “The attempt and the effort to gather more information to digest it to help use that information to make improved farm income and farm management decisions is a critical part of the management decisions for producers this year,” he said.
National data for farm income decline in 2021 from 2020 can be found here.
Nebraska data for farm income decline in 2021 from 2020 can be found here.
Lubben made his comments Thursday during a joint webinar on CFAP payments from UNL and the USDA Farm Service Agency.