American farmer has cashed well in 2021

American farmers have had a good year financially. Compared to 2020, income has increased by almost a quarter, according to an estimate by the United States Department of Agriculture (USDA).

Combined farm income is estimated at $116,8 billion. This is an increase of no less than 23% compared to 2020 and also the highest level since 2013. Then the income was $123,8 billion. When income is compared with the average of the period from 2000 to 2020, there is an increase of almost 25%. Income is calculated by the USDA by subtracting the costs of production.

America has more than 2 million registered agricultural companies. According to the USDA, the median income this year is at $82.300. In practice, however, this is not representative due to the differences in companies (size and sector).

Good year for livestock farmers and arable farmers
Both livestock farmers and arable farmers have had a good year. This is thanks to the good prices for grains, soya, cotton and beef. Revenues (excluding costs) for wheat, corn and soy were up $35 billion this year, an increase of 36%. This is due to better grain prices and higher acreage. On the cost side, arable farmers saw the costs of fertilizer rise sharply.

It is striking that American pig farmers also saw their yields rise considerably, while here in Europe the incomes are under heavy pressure. Revenues increased this year by nearly $7 billion to $26,8 billion, bringing the average revenue per pig farmer to about $440.000. In June, the American pig price touched a record of almost $3 per kilo, in the meantime prices have fallen to about $1,20.

Dairy farmers saw their yields rise only very slightly. While milk prices rose sharply in Europe in the second half of this year, this is less the case on the other side of the planet. Revenues increased $1 billion to $41 billion. The broiler sector saw revenues increase by more than $10 billion to $32 billion. This is due to good poultry meat prices.

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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