US FARMERS REAP BIGGER CROP PROFITS AND BOOST STOCKPILES

MIDWEST- It turns out that 2021 was a pretty good year to be an American farmer.

After struggling through extreme weather, a trade war and tepid demand in recent years, things started to turn around this season as Chinese buying roared back.

What’s more, crops proved resilient against bouts of dryness that hit some parts of the Midwest, and the U.S. Department of Agriculture raised its estimates for domestic corn and soybean stockpiles in a key report out Tuesday in Washington.

Bumper production on the heels of record corn demand from China means farmers are finally reaping profits from what they’re growing and not having to rely as much on government subsidies, like those distributed by the Trump administration during the trade war. Bigger crops would also be welcome news to consumers that are struggling with higher grocery bills.

Still, it’s unclear how long the good times will last. Energy and fertilizer costs are going up, signaling thinner margins ahead. And meanwhile, corn and soybean prices are both down about 25% from this year’s peak in May. But for those farmers that managed to lock in sales at the start of the summer, this season is a welcome turnaround. U.S. farm income from crops is expected to jump 20% to $230.1 billion in 2021, the second-highest ever, trailing the record set in 2012, according to USDA estimates.

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