farm income

The U.S. Department of Agriculture is projecting farm income will increase significantly this year, but that’s only because of unprecedented government payments that could top $40 billion.

The latest Farm Income Report from the USDA shows net income will total $102 billion, a 23% increase over last year. But 36% of that money is coming from federal subsidies intended to make up for coronavirus losses.

Without that aid, net farm income would be down more than $10 billion this year.

Grant Gerlock / NET News/Harvest Public Media

Farmers in the Midwest are facing a situation they haven’t seen in years. Grain prices are down. After some of the most lucrative growing seasons they’ve ever seen, some producers could lose money on this year’s crop. That could slow down the rural economy.