(NAFB) – An anticipated scale down of government aid for farmers spurred by the coronavirus will result in farm income sliding lower during 2021.  That’s the latest projection from the University of Missouri’s Food and Agricultural Policy Research Institute, which released its annual baseline report Friday.  Director Pat Westhoff says net income this year is projected at 112 billion dollars, a nine-billion decrease.

He notes that last year’s total was heavily influenced by relief funds including the Coronavirus Food Assistance Program.

The drop is despite a significant increase over the past six months in exports as well as the cash price for corn, soybeans, and hogs.

While coronavirus has been an overwhelming factor in market conditions for over a year, other surprises could have an impact on projections. Westhoff notes that the drop in soybean and corn stockpiles is one factor that could influence the markets.

Corn stockpiles are decreasing as a result of increased purchases by China, following flooding in their corn-growing provinces.

FAPRI Director Doctor Pat Westhoff notes that the arrival of La Niña last fall depressed corn yields, after USDA had initially projected record production for the season.