Those in Washington, DC, who watch and analyze the impact on conventional farm income numbers and their relationship to federal emergency program checks are getting increasingly nervous, as producers appear to be relying on ongoing government emergency payments to prop up income, a strategy seen as short-sighted given the iffy future of a fourth round of COVID 19 economic stimulus money.
USDA economists said this week in its “2020 Farm Sector Income Forecast” that 2020 net farm income will jump $19 billion or nearly 23% over a year ago, hitting $102.7 billion. Net cash farm income will increase nearly $5 billion to $115.2 billion, USDA said. The problem with those otherwise rosy numbers is that USDA says farm cash receipts will drop 3.3%, masking an almost 66% increase in government direct farm payments this year over last.
The bare numbers also hide a disparity in economic outcomes between animal owners/producers and plant producers.
