The U.S. Department of Agriculture is forecasting net cash farm income to fall 9 percent in 2020 to $110 billion. The agency ties that to lower government payments with an expected decrease in MFP payments, rising expenses and low grain prices. SDSU Extension Agribusiness Specialist Matt Elliott says those numbers and trends are not surprising.
He says the income trend continues to indicate poor margins for producers.
Elliott advises producers to have a solid risk management plan in place for their operations to continue to weather the downturn.
While USDA expects corn and soybean prices to decline, they’re forecasting the revenue for dairy, pork and beef to grow.
