University of Missouri Updates Ag Baseline Projections

The June update to baseline farm economic projections by the University of Missouri suggests a $3 billion decline in net farm income. The University’s Food and Agricultural Policy Research Institute Released the June update Tuesday. The forecasted decline in net farm income comes as farmers will receive a record total of government payments at $33 billion and total farm support reaching $50 billion in the current fiscal year. Given projected market developments and the assumption of no new government payment programs, both net farm income and net cash income are forecasted to decline again in 2021, with net farm income falling below $80 billion. The report projects 2020 corn-planted area at 96 million acres, second only to 2012, but one million acres below the March intentions report. The forecast expects corn prices received by farmers at $3.06 a bushel. Projected soybean-planted area is 84.5 million acres in 2020, up eight million acres from 2019 and one million acres from the planting intentions report. The report projects soybean prices for farmers to fall to $8.21 a bushel.