Government Payments Make Up One Third of Farm Income in 2020

Recent USDA data showed 2020 net farm income is expected to surge to beyond $100 billion for the first time in seven years, marking an almost $20 billion increase from 2019. That jump comes with a caveat, however; farm cash receipts are actually almost $14 billion lower than last year, but federal payments are almost $15 billion higher year-over-year. That means those largely direct payments account for just over 36% of the total farm income picture for 2020. Of the $37.2 billion total, $4.7 billion will be paid in ARC program payments, with $100 coming as PLC payments. Conservation program, LDP and marketing loan gains also contribute to the federal payment component of the 2020 farm income picture. See more here.