University of Illinois economist projects potential record farm revenue for 2021
Economists at the University of Illinois are projecting record average grain farm revenue for 2021.
Gary Schnitkey says above average crop yields and commodity prices are driving the projection. “Given those two things, we are projecting right now a $325,000 revenue for 2021, which would be a record level.”
University of Illinois data shows a $325,000 average grain farm income would be a jump of $75,000 from 2020 and a leap of $251,000 from 2019. Schnitkey says that figure does not include any ad-hoc payments (like Coronavirus Food Assistance Program 3 and Wildfires and Hurricanes Indemnity Program), Ag Risk Coverage/Price Loss Coverage, or crop insurance payments, so total incomes could be even higher.
Schnitkey says the bad news is supply chain issues may make it more difficult for farmers to offset that income.
“Purchases of equipment will be very difficult at this point in time because of supply issues and input purchases are in interesting issue too.”
The data for the projection is collected from farms enrolled in the Illinois Farm Business Farm Management Program.