Farm Income Likely To Increase In 2021, But Could Decline in 2022

Recent gains in farm income may be coming to an end next year.  Data from USDA’s Economic Research Service suggest that while cash receipts will reach their highest point in eight years, the uptrend may reverse next year.  Doctor Pat Westhoff, director of the Food and Agriculture Policy Research Institute at the University of Missouri, says government programs launched in response to the coronavirus pandemic have provided a good deal of this year’s boost.

Westhoff also highlights rising commodity prices, particularly grains and oilseeds.  He notes that FAPRI is projecting higher income than what ERS released earlier this month.

The University of Missouri’s Food and Agriculture Policy Research Institute recently released a pair of updates to their annual baseline projections for the farm economy over the next decade, reflecting recent reports from USDA.  Director Doctor Pat Westhoff notes that grain prices could decrease next year as acres impacted by poor weather in Brazil return to full production.