Posts

Jon Ihry

MN Farms See Higher Income in 2020

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Despite the challenges of COVID-19, Minnesota farms saw improved profitability in 2020, primarily due to higher commodity prices in the third and fourth quarters of 2020. 
 
Median net farm income for Minnesota farms reached $106,969 in 2020, a welcome increase after seven years of low profitability. When adjusted for inflation, 2020 farm profits were above average compared to the historical records tracked by University of Minnesota Extension and the Minnesota State Agricultural Centers of Excellence. Overall, the average Minnesota farm saw improved working capital, positive earned net worth change and improved debt coverage. 
 
Improved commodity prices are expected to continue in 2021. But operating expenses will likely trend up, related to higher energy and increased input prices. As spring nears, many farmers are optimistic for a more “normal” year after the uncertainty and challenges of 2020. But many unknowns remain related to the pandemic and our nation’s economic recovery.
 

Over $7 Billion Paid in CFAP 2 Payments

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During the first month of the signup period, USDA approved more than $7 billion in the second round of the Coronavirus Food Assistance Program. Through CFAP 2, USDA is making $14 billion of assistance available to farmers and ranchers. Iowa received more payments than any other states with $778 million. A total of $510 million has gone out to Minnesota farmers. A total of $352 million in CFAP 2 payments were made in the first month of enrollment in South Dakota. North Dakota farmers received $246 million. The Farm Service Agency is taking CFAP 2 applications through December 11.