Minnesota Farmers See Highest Annual Profits in Nearly a Decade

MINNEAPOLIS (AP) — Rising commodity prices, good weather and two rounds of government aid in 2020 led Minnesota farmers to their most profitable year in nearly a decade.

A report from the University of Minnesota Extension and the Minnesota State Agricultural Centers of Excellence pegs median farm net income at nearly $107,000 last year following seven years of low profitability.

By contrast, from 2013 to 2019, the state’s median annual farm profit hovered between about $27,000 and $42,700.

Economists say 2020 provided “a sigh of relief,” though they are measured their assessment because of the volatility of farming, the Star Tribune reported.

Without government aid, Minnesota farmers would have experienced an eighth straight year of low profitability, said Pauline Van Nurden of the University of Minnesota’s Center for Farm Financial Management.

“Farms did have a successful year last year — a profitable year — given all of the challenges of the pandemic,” Van Nurden said. “It was the first year in eight years that they’ve really seen strong profits. It’s been a pretty long downturn up until now.”

Government support played a key role in farm profits last year, accounting for 12% of gross farm income for the average producer.

“Farmers would always rather earn our income from the marketplace than the government,” said Kevin Paap, president of the Minnesota Farm Bureau. “But that was the lifeline to keep many of us going early on (in the year).”