The USDA has released a forecast that predicts net farm income for US farmers will decrease by almost US$10bn in 2021.
According to Modern Farmer, the USDA forecast includes various broad-based income predictions as well as specific predictions by category of the industry.
The forecast predicts a decrease in net farm income by 8.1 per cent, equivalent to US$9.8bn. That’s largely due to the fact that net farm income is a figure that includes all sources of farm revenue, including government assistance.
The US-China trade relationship, coupled with the Covid-19 pandemic, saw a substantial increase in government payments in 2020. This year, the USDA is forecasting those payments will decrease by almost half (45.3 per cent), or approximately US$21bn.
Gross revenue from vegetable production (including melons) is forecast to decrease by 5.7 per cent in 2021. Fruits and nuts are forecast by the USDA to decrease by 9.6 per cent.