When it comes to farm income in 2021 according to USDA’s first forecast, “We’re going to have another above average year,” even though farm income will be lower than it was last year. That according to USDA Chief Economist Seth Meyer.
USDA is forecasting net cash farm income this year at $128.3 billion, down almost 6% from last year. Meyer says this will be an unusual year as commodity prices will be much higher, but overall farm income will still fall.
“Because government payments are trailing off, assumed to trail off, from things like Coronavirus Food Assistance (CFAP) and Market Facilitation payments of the prior years,” says Meyer.
Farmers are likely to get 45% less in government payments compared to last year.
Meanwhile, farmers will sell more product at mostly higher prices.
“Total cash receipts up $20.4 billion, up $11.8 billion for crops and up $8.6 billion for livestock.”
That is primarily driven by the rising prices for hogs on the livestock side and corn and beans on the crop side.