U.S. government checks constituted 40% of farmers' income in 2020: USDA [View all]
Source: AP via Marketwatch
DES MOINES, Iowa (AP) — Thanks to the government paying nearly 40% of their income, U.S. farmers are expected to end 2020 with higher profit than 2019 and the best net income in seven years, the Department of Agriculture said in its latest farm income forecast.
Farmers faced challenges throughout 2020 that included the impact of trade disputes; low prices that drove down cash receipts for corn, cotton, wheat, chicken, cattle and hogs; and weather difficulties such as drought in some areas and an unusual August wind storm stretching from South Dakota to Ohio that centered on Iowa.
Farm cash receipts are forecast to decrease nearly 1% to $366.5 billion, the lowest in more than a decade, measured in real dollars. Direct federal government payments saved farmers’ bottom line: Farmers overall saw a 107% increase in direct payments from 2019, when a third of net income came directly from the government.
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Excluding USDA loans and insurance indemnity payments made by the Federal Crop Insurance Corporation, farmers are expected to receive $46.5 billion from the government, the largest direct-to-farm payment ever. That includes $32.4 billion in assistance through coronavirus pandemic relief food assistance and Paycheck Protection Program payments to farmers. Additional support comes from more traditional revenue loss programs due to low commodity prices, compensation for trade disruptions resulting from tariff battles and conservation programs assistance.
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“At first it did help, but then we kept getting payments and I don’t know that those were warranted,” said Rick Juchems, 65, who grows corn and soybeans and custom raises hogs. “The markets had already recovered quite a bit and they’re recovering yet more, so it helps some but it’s one of those things that the second one was more than we needed.”
Read more: https://www.marketwatch.com/story/u-s-government-checks-constituted-40-of-farmers-income-in-2020-usda-01609444429?mod=mw_latestnews
This explains these gawdawful farmers for trump signs that are still up
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