Farmers May See Dip In Income, But Experts Say There Are Reasons To Be Optimistic

By Seth Bodine

Farmers might make less money this year due to less assistance from the government and increased production costs.

Farm income is estimated to be $112 billion in 2021 — $9 billion less than last year.

In 2020, farmers and ranchers made a total of $121 billion, the highest amount since 2013. Government subsidies account for $46 billion, according to a report from the Food and Agricultural Policy Research Institute at the University of Missouri.

China also played a big part in increased incomes. Patrick Westhoff, director of the institute, says there has been an increase in demand in crops like soybeans after African swine fever devastated the Chinese pork industry.

“They've been trying to rebuild. To do so, of course, you need feed for those livestock,” Westhoff says. “They’re trying to change the way they feed livestock without using kitchen scraps and things like that as much as they used to, but instead rely on corn and soybean meal.”