Federal aid payments accounted for more than a third of US farmers’ $ 121.1bn in net income last year.
American farmers will not see another year as profitable as 2020 for at least a decade, the US Department of Agriculture estimated on Tuesday.
Agricultural profit reached its highest level in seven years amid a flood of epidemic and trade war-related government aid, with direct accounting aid payments of US $ 121.1 billion from more than a third of US farmers in net income last year.
Despite a steady increase in sales through 2030, the USDA forecast profit will be lower, falling to $ 100.1 billion this year and then fluctuating to a range between $ 99.3 billion and $ 109.8 billion through 2030.
USDA estimates assume no change in current government policy, although the Biden administration has suggested that it is considering paying farmers to encourage climate-friendly practices. The trade bailout is not scheduled to continue without new action by the President or Congress, nor are there measures for epidemic relief.
US agricultural exports are projected to increase 12% by the end of the federal fiscal year. 30 driven by high prices and large volumes due to strong global demand. The shipment value is projected to exceed the record set for the following year 2014 and to continue upward for the rest of the decade.