USDA projects 2022 calendar year net farm income up nearly $20 billion, or 13.8 percent from 2021. American Farm Bureau Federation Senior Economist Veronica Nigh explains what is driving the increase.
“Predominantly, this is a price play with 97 percent of that increase in cash receipts attributable to increases in price. Now, it’s not just all inflation either, because when you take out the inflation, farm income is forecast to increase by over seven percent. So, it’s mostly an increase in price. And you know, that’s despite the fact that production expenses are forecast to increase by almost 19 percent in 2023,” she said.
Nigh says USDA projects increases in cash receipts for both crops and livestock.
“On the crops side, corn, beans, and wheat are forecast to account for most of the net increase, but they’re expecting growth in receipts for other commodities as well including fruits, nuts, vegetables and melons. On the livestock side, they’re expecting an increase in receipts in every animal product,” she added.
She adds farm sector equity is expected to increase as well.
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Sabrina Halvorson
National Correspondent / AgNet Media, Inc.
Sabrina Halvorson is an award-winning journalist, broadcaster, and public speaker who specializes in agriculture. She primarily reports on legislative issues and hosts The AgNet News Hour and The AgNet Weekly podcast. Sabrina is a native of California’s agriculture-rich Central Valley.