University of Missouri analysts optimistic about U.S. agriculture markets
Analysts at the University of Missouri explain that lower government payments and higher farm production costs could outweigh the increase in sales, according to a new report.
Even with the decline projected by analysts at the Food and Agricultural Policy Research Institute (FAPRI), net farm income of $112 billion in 2021 would still be much higher than it was from 2015-2019.
Net farm income increased to $121 billion in 2020, the highest level since 2013, primarily because of $46 billion in government payments.
Increasing imports by China explain much of the recent strength in grain and oilseed markets. If China’s purchases continue at the recent pace, U.S. exports and market prices could be higher than projected. ■