Despite the disruptions of the pandemic, U.S. farm income, a broad measure of profits, will be the highest since 2013, thanks to strong corn, soybean, wheat, broiler, cattle, and hog prices this year, said the USDA on Wednesday. "It is primarily a price story," said USDA economist Carrie Litkowski.
The USDA would receive nearly $90 billion through the "build back better" bill to mitigate climate change, reduce the risk of wildfires, provide debt relief for economically distressed farmers, and encourage rural economic growth, said the House Agriculture Committee on Wednesday.
Nearly 6 million people in rural America had incomes below the poverty line during the pandemic year of 2020, an increase of 315,000 from the preceding year, according to a Census Bureau estimate released on Tuesday. The annual Income and Poverty report indicated that one in seven rural residents lived in poverty, compared to the national average of one in nine.
The USDA will invest $464 million to strengthen electric service in rural communities through smart-grid technology and help agricultural producers and businesses add renewable energy systems to lower energy costs and build climate-smart energy capacity in 48 states and Puerto Rico, Agriculture Secretary Tom Vilsack announced yesterday.
The relative handful of farmers who have signed carbon sequestration contracts is half the size of the group that has leased land for solar electricity production, said Purdue University on Tuesday. Solar leases, which may exceed $1,000 an acre annually, are more lucrative than the rates offered for carbon capture.
President Biden will issue an executive order to expand competition in the agricultural sector and assure farmers of the right to repair increasingly complex tractors and other equipment, said the White House on Tuesday. The "right-to-repair" rules were expected to include smartphones and other widely used devices.
President Biden chose former Rep Xochitl Torres Small of New Mexico to serve as agriculture undersecretary for rural development, overseeing a portfolio of $43 billion in housing, utilities and business and industry programs. Congress overrode a Trump-era reorganization of USDA to re-create the Senate-confirmed post in 2018.
President Biden unveiled a $2 trillion infrastructure package — "a once-in-a-generation investment in America" — on Wednesday that calls for spending $100 billion to deliver affordable and reliable broadband service to all Americans. The package also proposed a $5 billion Rural Partnership Program to support locally led initiatives to create jobs and economic growth in rural America.
Despite the effects of the pandemic and the trade war, U.S. farm income this year will be the highest since 2013 because of the largest federal payments ever — $46.5 billion, triple the usual amount, the government said on Wednesday. Think tank analysts said farm income would fall in 2021 with the expiration of Trump-era bailouts, but the drop-off will be lessened by the ongoing rally in commodity prices and increased ag exports.
The coronavirus "dealt an economically devastating hand to nearly the whole country," but job losses were smaller and shutdowns were shorter in rural America, said rural lender CoBank in a quarterly report. "Economic recovery may now favor rural communities for the first time in many years."(No paywall)