Decrease in government aid could mean red ink for 2021 crop budgets
Looking at 2021 crop budget projections, an ag economist says government aid will be needed to stay out of the red.
Scott Irwin with the University of Illinois tells Brownfield on average Illinois corn and soybean farmers are expected to get close to break-even for 2020, but that is with the help of more than $100/acre government payments.
“If we look at 2021, without those payments we are looking at losses on corn of roughly $75 per acre possibly upwards of $100 per acre. Those are just really catastrophic projected losses.”
He says something must give to reach break even in 2021.
“Either we have to have continued $100 per acre plus payments, or prices for corn and soybeans go up, or we will have to have a substantial ratcheting down on the cost side of the ledger.”
Irwin based his comments off of a 2021 crop budget projections report from his colleagues at the University of Illinois.