U.S. farm trade hit new highs in 2021. Net U.S. farm income stood at a record $117 billion in 2021, its highest level in eight years, owing to a rise in prices, strong global demand, and massive government payouts. According to the agricultural outlook forum released by USDA in February, commodity prices and farm exports are expected to grow to record levels. And farmers are expected to plant an additional 2.1 million acres of the eight major field crops.
The bullish sentiment surrounding the industry is evidenced by the iShares MSCI Global Agriculture Producers ETF’s (VEGI) 17.6% returns over the past year. The ETF is currently trading close to its all-time high.
