University of Kentucky Agricultural Economist Will Snell says many farmers have fared reasonable well this year.
Snell was part of a team delivering the annual agriculture economy report Thursday during the Farm Bureau meeting in Louisville. “Surprising to many is that, in aggregate, we may see an increase in net farm income this year, not due to the market, but due to the availability of what we call market facilitation payments. Those were the payments that the Trump administration provided to offset the adverse effects of the trade war,” noted Snell.
With less than ideal commodity prices, Snell said the government support approach is not sustainable in the long run. Kentucky producers saw increases in equine, corn, wheat, dairy, and hemp receipts. Snell noted production levels were, by and large, pleasing. “One thing that we have benefitted from this year, more so than other states, even though we had challenging weather conditions. It looks like our yields are going to be a little bit better than a lot of farmers certainly anticipated,” explained Snell
Snell said Kentucky’s dairy idustry saw a rebound in prices, but long-term challenges remain. Despite a decline in sales this year, poultry will remain the state’s top commodity followed by horses, corn, soybeans, and cattle. Snell noted projections call for a slight increase in cash receipts in 2020 with poultry, cattle, and hogs rebounding.
