Agricultural Sector Income Forecast 2021, December • Farm Policy News
USDA’s Economic Research Service (ERS) said on Wednesday that “Net farm income, a general measure of profit, should to augment $ 22.0 billion (23.2 percent) from 2020 to $ 116.8 billion in 2021. This expected increase follows a forecast to augment $ 15.7 billion (19.9 percent) in 2020. “
âAfter increasing by 9.2 billion dollars (8.6%) in 2020, net cash farm income is planned for to augment $ 17.0 billion (14.7 percent) To $ 133.0 billion in 2021.
If achieved, net farm income in 2021 would be at its highest level since 2013; net cash farm income is said to be at its highest level since 2014 (in real terms).
ERS pointed out that âTotal harvest recipes are planned for to augment $ 35.4 billion (17.9 percent) from levels 2020 to $ 233.0 billion. When combined, But, soy, and corn revenue should to augment $ 35.3 billion (36.4 percent) in 2021, which represents almost all of the projected growth in cash receipts from crops. “
Wednesday’s update stated that “But revenue should to augment $ 24.4 billion (52.4 percent) in 2021, due to expected higher prices and quantities. Soy revenue in 2021 should to augment $ 8.6 billion (20.8 percent), due to expected price growth.
ERS pointed out that âUSDA pandemic assistance for producers, including the Food aid program against the coronavirus (CFAP), relieves producers whose operations are directly affected by COVID-19. Payments in calendar year 2021 of these USDA programs are planned to $ 8.0 billion. In 2020, the producers received $ 23.5 billion in CFAP payments.
âNon-USDA Pandemic Assistance (payments from Paycheque Protection Program (PPP), administered by the Small Business Administration), is planned to $ 8.7 billion for 2021, compared to $ 6.0 billion 2020. “
“Payments of the agricultural invoice for commodities during the 2021 calendar year as part of the Agricultural risk coverage (ARC) program should be $ 95 million, a decrease of $ 1.2 billion compared to 2020 levels. Price Loss Coverage (PLC) payments in 2021 should be $ 2.1 billion, a decrease of $ 2.8 billion from 2020 levels.
“Conservation payments USDA Farm Service Agency and Natural Resources Conservation Service financial assistance programs should be $ 4.0 billion in 2021, up 3.9% from 2020. “
Regarding production expenditure, ERS noted that âproduction expenditure in the agricultural sector, including expenditure associated with farmer housing, should to augment $ 29.8 billion (8.3%) from the previous year in nominal terms to $ 387.6 billion in 2021. “
Specifically, ERS pointed out that âFood costs, the most important category of expenditure, should to augment in 2021 by $ 7.6 billion (13.4 percent) in nominal terms to $ 64.4 billion, due to rising feed prices.
“Fertilizer-lime-amendment expenses are expected to increase by $ 3.1 billion (12.5 percent) in nominal terms in 2021 to $ 27.5 billion.