FEBRUARY 10, 2023:
While American families are dealing with record-high grocery prices, farm families can expect to see a drop in income during 2023. American Farm Bureau Federation economists analyzed the Farm Income Forecast in their latest Market Intel Report, noting that income will fall 16 percent this year while costs will rise over four percent.
“The farm income forecast is a stark reminder that American farmers and ranchers aren’t reaping benefits from higher grocery store prices,” says AFBF President Zippy Duvall. “While some commodity prices are rising, farmers are being hit by circumstances beyond their control, which is why the farm bill is so important and must get passed this year.”
Adding to the challenges are rising interest rates and farm-sector debt that will increase by $31.9 billion to a record $535 billion.
“Farm bill programs enable farmers to manage the risk and weather the challenges to continue feeding America’s families,” Duvall adds.
Read the full Market Intel here.
FEBRUARY 8, 2023:
USDA’s Economic Research Service released the February Farm Income Forecast Tuesday (Feb. 7, 2023).
Net farm income, a broad measure of profits, is forecast at $136.9 billion in calendar year 2023, a decrease of $25.9 billion, or 15.9 percent, relative to 2022. After adjusting for inflation, net farm income is forecast to decrease $30.5 billion, or 18.2 percent, in 2023. Despite the expected decline, net farm income in 2023 would be 26.6 percent above its 20-year average of $108.1 billion in inflation-adjusted dollars.
Net cash farm income is forecast at $150.6 billion in 2023, a decrease of $39.4 billion, or 20.7 percent, relative to 2022. Cash receipts from the sale of agricultural commodities are forecast to decrease by $23.6 billion from a forecast record high of $543.4 billion in 2022 to $519.9 billion in 2023. Also contributing to the forecast of lower income in 2023 are lower direct Government payments and higher production expenses. Average net cash farm income for farm businesses is forecast to decrease 17.7 percent from 2022 to $92,400 per farm in 2023.
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