What We Know About Income Outlook for Crop Farms Given COVID-19

Gary Donald Schnitkey; Krista Joy Swanson; Nicholas D Paulson; Carl R. Zulauf; Jonathan W Coppess

What We Know About Income Outlook for Crop Farms Given COVID-19

Gary Donald Schnitkey, Krista Joy Swanson, Nicholas D Paulson, Carl R. Zulauf, Jonathan W Coppess

Research output: Contribution to specialist publication › Article

Abstract

Income prospects have been diminished for Illinois grain farms because of the COVID-19 crisis. Expectations are for lower prices to remain after COVID-19, which will lower crop revenues for 2020. Increased commodity title payments could partially offset crop revenue declines, and some non-land costs could decrease. However, the expected price declines have larger impacts than any increase in commodity title payments or decreases in expenses. Given current expected prices, a combination of above-trend yields or government aid is needed to get incomes at levels where financial deterioration does not occur.

Original language	English (US)
Volume	10
No	54
Specialist publication	farmdoc daily
Publisher	Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign
State	Published - Mar 24 2020

Keywords

Coronavirus
COVID-19
2019-nCoV
novel coronavirus
virus

Online availability

https://farmdocdaily.illinois.edu/2020/03/what-we-know-about-income-outlook-for-crop-farms-given-covid-19.html

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abstract = "Income prospects have been diminished for Illinois grain farms because of the COVID-19 crisis. Expectations are for lower prices to remain after COVID-19, which will lower crop revenues for 2020. Increased commodity title payments could partially offset crop revenue declines, and some non-land costs could decrease. However, the expected price declines have larger impacts than any increase in commodity title payments or decreases in expenses. Given current expected prices, a combination of above-trend yields or government aid is needed to get incomes at levels where financial deterioration does not occur.",

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AU - Coppess, Jonathan W

PY - 2020/3/24

Y1 - 2020/3/24

N2 - Income prospects have been diminished for Illinois grain farms because of the COVID-19 crisis. Expectations are for lower prices to remain after COVID-19, which will lower crop revenues for 2020. Increased commodity title payments could partially offset crop revenue declines, and some non-land costs could decrease. However, the expected price declines have larger impacts than any increase in commodity title payments or decreases in expenses. Given current expected prices, a combination of above-trend yields or government aid is needed to get incomes at levels where financial deterioration does not occur.

AB - Income prospects have been diminished for Illinois grain farms because of the COVID-19 crisis. Expectations are for lower prices to remain after COVID-19, which will lower crop revenues for 2020. Increased commodity title payments could partially offset crop revenue declines, and some non-land costs could decrease. However, the expected price declines have larger impacts than any increase in commodity title payments or decreases in expenses. Given current expected prices, a combination of above-trend yields or government aid is needed to get incomes at levels where financial deterioration does not occur.

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KW - 2019-nCoV

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KW - virus

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PB - Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign

ER -

What We Know About Income Outlook for Crop Farms Given COVID-19

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Keywords

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