2020 ag income outlook higher than expected
An ag economist says the current ag income outlook in much of the Midwest is higher than expected.
Gary Schnitkey with the University of Illinois tells Brownfield in Illinois the outlook is higher now than it was in July. He attributes that to higher commodity prices, the announcement of CFAP2 and good yields.
“For Illinois at least higher yields, probably not for Iowa and a couple of other places, but USDA is projecting a second highest yield ever in Illinois so that would help.”
He says strong export demand from China and yield losses from dry weather and the derecho have boosted prices and farmers should take advantage of those while they can.
“So, I wouldn’t be expecting higher prices. I would think about hedging some of the 2021 crop at these prices.”
Schnitkey says he was not expecting soybean prices to rally this high so farmers should be flexible with their marketing plan and consider selling now.