Ag Outlook 12-8-2020

The profitability picture is spotty regards the various sectors of American agriculture this year. While net cash farm income due to government payments and a recent commodity rally have helped cash farm income improve, it’s another story for animal and livestock producers. Chief economist Rob Johannson says COVID has taken a $9.7 billion toll on this sector. However, he forecasts conditions to be more favorable in the year ahead for cash receipts. The question now is whether this will be enough to offset higher costs that are expected for feed in 2021. And also to be figured in will be the wild cards of weather and trade trends.