Source:  POLITICO, 9/8/20

Farm income is projected to rise 22 percent this year to $102.7 billion, fueled by a massive increase in government payments to ag producers, reports Pro Ag’s Liz Crampton. The higher income estimates for 2020 come despite a projected 3 percent drop in cash receipts for all farm commodities.

With trade bailout payments, coronavirus relief checks and other direct subsidies, federal aid to farmers and ranchers is projected to skyrocket to at least $37.2 billion in 2020 — a 66 percent increase from last year — according to USDA’s latest update.

What it means: The numbers are the latest measure of the industry’s rising reliance on subsidies amid a prolonged agricultural downturn, exacerbated by Trump’s trade wars and coronavirus-related supply chain disruptions.

— Government farm payments were surging even before the pandemic: Last year, federal dollars flowing to agriculture blew past $20 billion for the first time since 2005, mostly due to Trump’s tariff relief programs. That marked a 64 percent jump from 2018.

Long-term impact: Farm policy experts warn that the sharp increase poses a problem for taxpayers, producers and lawmakers that the next administration will need to untangle, as your host reported in July.