Farm Incomes 2021
Farmers in most regions of the country are likely to have lower cash receipts and farm incomes this year, but for some places, the trend could be quite the opposite.
USDA Chief Economist Seth Meyer says US farm's incomes will likely drop this year from 6 to 8 percent on average. But some areas in the midwest, and west may see a better outcome.
Meyer: “ Because they’re seeing a rebound in hog prices. This makes sense. We talked all of 2020 about how hog prices had been under pressure, especially in times of coronavirus and slaughter capacity issues. IF you think about corn, beans, and hogs
Market prices for hogs are climbing and the outlook for pork in 2021 is bright. Those same states with hog production also grow corn and soy. Wheat receipts are forecast to increase 2.2 percent. Cash receipts from cattle and calves are expected to increase by $3.9 billion or 6.4 percent, mainly because of higher price forecasts.
Those will drive the increase in cash receipts in those states.
Colorado may be in a decent position to see incomes increase. Cattle and Calves, the state’s largest cash crop, was valued at $3.6 billion according to the USDA’s Farm Income and Wealth Statistics chart. Corn is the state’s number 3 cash crop valued at $571 million. The same chart indicates Colorado’s net farm income in 2019 the latest year available, $1.8 billion
Nationwide, total crop receipts are expected to increase by $11.8 billion (5.8 percent) from 2020 levels. But, direct government farm payments are forecast at $25.3 billion in 2021. That’s a decrease of $21 billion (45.3 percent). The expected decrease is because of lower disaster assistance for COVID-19 relief in 2021 relative to 2020.