DJ US Farm Incomes to Drop as Record Federal Payments Recede -- Market Talk
1258 ET - US farm income will drop 8% in 2021 as historic government payments fade, according to a US Department of Agriculture forecast. Direct government payments, which soared to a record $46B under the Trump administration, will be cut nearly in half this year, pushing net farm income to $111B, USDA said. Those payments comprised nearly 40% of farmers' incomes in 2020 as the former administration sought to stem farmers' losses from the coronavirus pandemic. Higher production costs, particularly for animal feed, fertilizer and labor, also will weigh on farmers' earnings this year. However, sharply higher prices for major agricultural commodities are expected to help offset the drop-off in federal support, with cash receipts for corn and soybeans projected to increase by 19% and livestock receipts up by 5%. (email@example.com; @jessenewman13)
(END) Dow Jones Newswires
February 05, 2021 12:59 ET (17:59 GMT)
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