Direct government payments to farmers and ranchers are forecast to increase 107 percent from 2019 to 2020, according to the latest data from USDA’s Economic Research Service.
All payments in 2020 are forecast at $32.6 billion, with $11 billion coming from the first Coronavirus Food Assistance Program (CFAP) and $13.3 billion coming through the second CFAP. Also included are $5.9 billion in PPP loans, which will be forgiven if requirements are met, and other payments at $2.4 billion.
USDA released its latest Farm Income and Financial Forecasts on Dec. 2, factoring in the November World Agriculture Supply and Demand Estimates and other data.
The forecast covers about 2 million farmers who operate about 900 million acres of land.
With the boost in government aid, which is on top of the 64 percent increase in 2019, farmers are projected to see a 43 percent increase in net farm income in 2020.
Source: Farm Progress