The government will send a record $32.8 billion in direct payments to farmers this year, but the economic slowdown triggered by the coronavirus still will pull down farm income by 3 percent, said a think tank from the Food and Agricultural Policy Institute (FAPRI) at the University of Missouri.
Federal supports would amount to 36 percent of farm income, its largest share since 2001.
Payments are primarily tied to relief packages stemming from COVID-19 and trade wars. Both programs end this year.
After dipping to $90.6 billion this year, farm income would fall to $79.4 billion, in 2021, “given current market conditions and the assumption of no new government payment programs,” FAPRI said.
Source: Successful Farming