USDA’s Economic Research Service (ERS) projects that net farm income is expected to increase by $18.5 billion (19.5 percent) from 2020 to $113 billion in 2021.
Veronica Nigh, American Farm Bureau Federation senior economist, says the forecast puts net farm income at the highest level since 2013. “We hit a low of $62 billion back in 2016. So, reaching $113 billion in 2021 is certainly an impressive turnaround for the sector,” said Nigh.
“Sixty-eight percent of that increase in receipts is due to a price impact, which means about 30 percent of that increase is due to increases in the quantity sold.”
ERS projects the total animal product cash receipts are expected to increase by $26.5 billion (16 percent) to $191.5 billion in 2021. Cash receipts for cattle will increase by $8.3 billion (13.1 percent) because of higher prices and quantities sold.
