Farm production expenses are up again, and net cash farm income is down, though there is some good news as 2023 comes to a close.
USDA Chief Economist Seth Meyer says farm production costs are forecast to jump another three-and-a-half percent this year, with interest and livestock costs making up most of that. But, on the positive side…
“But we do have things moderating, like fuels and oils and fertilizer, things which had seen big runups in, say, the previous 18 months.”
Meyer says farmers will have spent 14% less for fertilizer this year, and less for pesticides, fuel, and livestock feed. Net cash farm income, though, is expected to fall.
Spiro Stefano heads USDA’s Economic Research Service.
“The net cash farm income for the calendar year 2023 is forecast at nearly $158 billion, which is down about 21 percent, relative to 2022.”
Though 2022 was a record year for net cash farm income, Stefano says farm solvency remains strong this year with asset values growing faster than debt.
“The farm sector remains fairly healthy in terms of its solvency. Bankruptcy rates have continued to fall, a fairly healthy financial situation for the farm sector.”
Compared with the last 20 years, farm income is still forecast above average despite the drop from 2022.
Comments