U.S. producers are expected to end 2020 with the best net income in seven years, according to USDA, after government aid accounted for nearly 40 percent of total income.
Last year was a whirlwind of a year, with producers facing retaliatory tariffs, natural disasters, weather difficulties such as extreme drought, and impacted market conditions from COVID-19.
Farm cash receipts are expected to decrease nearly 1 percent to $366.5 billion, the lowest in over a decade. Direct federal aid increased 107 percent from 2019, when one-third of net income came from government support. Not including USDA loans and insurance indemnity payments, producers are expected to receive $46.5 billion from the government, the largest direct-to-farm payment ever, according to MarketWatch.
Overall, net farm income is projected to increase 43 percent from 2019 to $119.6 billion, USDA estimated.
To read a full summary of USDA’s report, click here.
