Despite COVID-19 Challenges, Midwest Farm Incomes Receive Boost

CHICAGO, IL – The Federal Reserve released their latest Beige Book and according to the Chicago Federal Reserve Bank, the COVID-19 pandemic continued to weigh on agriculture incomes.

That said, farm incomes received a boost from some commodity price increases and CARES Act payments. Corn and soybean prices moved up after a USDA report that the number of corn acres planted was smaller than expected.

Following a smooth planting season, corn and soybean crops were off to an excellent start. Specialty crops were also in decent shape.

Meat production rebounded to levels near that of a year ago as packing plants reopened and began running extra shifts. Nevertheless, contacts reported a large backlog of hogs to slaughter. Cattle and hog prices fell and were below year-ago levels.

Milk prices at the farm gate stayed below last year’s levels in spite of some upward movement in dairy prices. Cheese demand surged, pushing prices to high levels. Ethanol margins widened, but some facilities remained closed and others were operating below full capacity.

Demand for sites to locate renewable energy assets, recreational ground, and rural housing helped keep farmland values mostly stable.
(SOURCE: Federal Reserve Bank Beige Book)