Baseline Update for U.S. Farm Income and Government Costs

FAPRI-MU Report #05-21 utilizes commodity supply, demand and price projections from the FAPRI-MU baseline update released in early September 2021 (FAPRI-MU Report #04-21). Higher commodity prices contribute to a sharp increase in U.S. net farm income in 2021. Under current policies, farm income could drop again in 2022, as government payments decline and production expenses continue to rise.