YOUR TEXAS AGRICULTURE MINUTE
Increased net farm income expected this year
By Gary Joiner
There’s some good news out of Washington. A new forecast from U.S. Department of Agriculture (USDA) projects increased net farm income for fiscal year 2021.
The agency expects net farm income to increase $18.5 billion from 2020, or 19.5%, to $113 billion.
The forecast puts net farm income at the highest level since 2013.
The American Farm Bureau Federation says 68% of that increase in receipts is due to a price impact, which means about 30% of that increase is due to increases in the quantity sold.
Increased commodity prices are the biggest factor. Receipts from corn, soybeans and wheat are forecast to increase by $38 billion. For animal products, an increase of $26 billion is anticipated.
On the other side of the ledger, higher expenses on the farm are also forecast. Those expenses are up 7% from last year. That adds up to about a $26 billion increase.
Higher fuel and oil prices, increases in fertilizer prices and labor expenses are the big drivers for the increase.
The preceding commentary is brought to you by Texas Farm Bureau, the “Voice of Texas Agriculture.” Called “Your Texas Agriculture Minute,” TFB will issue thought-provoking editorials each week—via print and audio—to spark understanding of agriculture in the Lone Star State and its impact on each and every Texan.
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