After two strong years of growth, U.S. farm income is forecast to drop substantially in 2023 as commodity prices fall and expenses rise, the U.S. Department of Agriculture Economic Research Service reported Tuesday.
And with food prices projected to rise into 2023, the nation’s producers will not be reaping the financial benefits.
The economic team said inflation-adjusted net cash profits are expected to decline from a record-high $195.3 billion last year to $150.3 billion in calendar year 2023, a drop of 22.9%.
Projected net farm income will fall to $136.9 billion, according to the ERS, 18.2% below the calendar year 2022 levels when adjusted for inflation. 2022 marked the best year on record for inflation-adjusted net farm income since 1973.
The division added that declines in farm income are expected to affect nearly all specialty operations and regions across the country.
The farm sector income and wealth forecast was the first of 2023. ERS senior economist Carrie Litkowski also spoke on a webinar about what the details of the forecast hold for farmers and legislators.
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