USDA’s Economic Research Service (ERS) is forecasting 2020 net farm income to rise by $19 billion from 2019. Net farm cash income is projected to rise by $4.9 billion. If these projections are accurate, this would put both measures above their 2000-2019 averages by small amounts.
So, if cash receipts are declining where did the higher incomes come from? Farm Program and ad hoc payments to farmers will rise from 2019 by near 100%. The red section of the chart below became the largest portion of farm program payments in 2020 which includes Payments from the Corona Food Assistance Program and the Paycheck Protection Program.
Another part of net income is expense. ERS projects the change of expenses by category. The categories projected to increase account for 69% of farm and ranch expenses while 31% of farm and ranch expenses are projected to decline. The net result is that 2020 farm and ranch expenses are projected to decline by 1.3% or $4.6 billion.
USDA ERS – Farm Sector Income Forecast. (n.d.). Retrieved September 3, 2020, from https://www.ers.usda.gov/topics/farm-economy/farm-sector-income-finances/farm-sector-income-forecast/
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