News

High unemployment rates continue to impact ag

The chief economist for American Farm Bureau says more than 30 million Americans remain unemployed as the coronavirus pandemic negatively impacts the economy.

John Newton says the ag industry is not exempt from the devastation.

“That’s going to impact food security and that’s going to impact farm income in the coming months and years,” he says.

He says high unemployment is impacting the farm economy.

“The high unemployment is going to impact the agriculture industry’s ability to service what amounts to be a record level of farm debt,” he says. “Farm debt is $425 billion so I think for the farm economy the high unemployment could impact the ability of farmers and ranchers to service their debt moving forward.”

Newton says even with government payments, net farm income is projected to decline in 2020 and challenges will likely continue in 2021.

He says there are some discussions on capitol hill about rewriting the farm bill next year to address low farm income and commodity prices and help farmers once federal assistance stops.