Farm income, at record high, to moderate through 2027

 

By Chuck Abbott, Successful Farming

Agriculture.com - 9/13/2022

 

War in Ukraine and record-large ag exports to China will drive U.S. net farm income to a record $148.3 billion this year, twice as high as five years ago, said the FAPRI think tank on Monday. Income would decline in 2023 and 2024 as commodity prices soften, and then hold steady through 2027.

 

High commodity prices will more than buffer the largest-ever year-to-year increase in production costs, $67 billion, said the Food and Agricultural Policy Research Institute. Revenue from crops and livestock would climb even faster, by $91 billion, this year. With farmland appreciating by 9.9%, a key indicator of farm financial health, the debt-to-asset ratio, would decline for the first time since 2013…

 

... “In 2022, farmers are paying a lot more for the inputs they buy and earning a lot more from the products they sell,” said the University of Missouri think tank...

 

... FAPRI’s projection of 2022 net farm income is similar to USDA’s estimate, released two weeks ago...

 

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