In general, farm profitability increased in 2020. AgCountry Farm Credit Services CEO Marc Knisely says improvements were seen in working capital and debt levels. “Even though farm income was up, a lot of that has come from tariff aid and CFAP, WHIP payments, PPP and things to help producers deal with the trade war and the pandemic.” Government payments are not sustainable, but Knisley says the grain market rally will establish a higher starting point for crop insurance and revenue insurance if these prices hold through March. Knisely sees the current farm financial situation as an opportunity farmers to to “build muscle” by building working capital, managing debt-to-asset ratios and reinvesting in the business.”
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