Projected net incomes on Illinois farms for 2019 and 2020
November 22, 2019 By Amie Simpson Filed Under: Illinois, News
Net farm income on Illinois grain farms in 2019 is projected to decline considerably because of lower yields.
Gary Schnitkey, an ag economics professor at the University of Illinois, and colleagues Krista Swanson and Dale Lattz released a paper with projected net incomes this week.
Net farm incomes on Illinois grain farms are projected to decline more than $80,000 per farm from 2018 levels.
But, Schnitkey says low yields are being partially offset.
“What’s aiding 2019 is actually higher prices- both corn and soybean prices are higher and MFP payments are there too so that helped with 2019 income,” he says.
He says 2020 farm incomes are projected to be lower unless…“We go to above trend yields like we had in 2018, 2017, and 2016, or we have another round of MFP payments,” he says.
Advice Schnitkey has is for growers to think of ways to conserve cash in 2020 because “cash is still king.”
Audio: Gary Schnitkey, University of Illinois
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