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Brownfield reports that Kansas City Fed economist Nathan Kauffman says direct payments made up about 40% of 2020 net farm income. Total farm income is about $100 billion this year, with Market Facilitation and CFAP payments near $60 billion.
He warns that financial pressure could rise in 2021 if payments decline.
Lower government support in 2021 could squeeze farm cash flow, but firmer corn and soybean prices would offset some of the pressure.
brownfieldagnews.comMark DorenkampNov 18, 2020After 1,623 past policy events, Corn moved a median +0.1% over 5 sessions (51% higher; middle half -1.4% to +1.5%), and +0.4% over 20.
After 1,905 past policy events, Soybeans moved a median +0.1% over 5 sessions (52% higher; middle half -1.4% to +1.8%), and +0.2% over 20.
After 1,019 past policy events, Wheat (SRW) moved a median -0.1% over 5 sessions (49% higher; middle half -1.7% to +1.5%), and +0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
