News

AEI on 2023 farm financial outlook

An ag economist says farm income is still relatively high even with USDA’s projected decline this year.

David Widmar with Ag Economic Insights tells Brownfield 2023 could be the sixth-highest farm income since the 1970s.

“It’s still going to be historically good, but it’s early,” he says.  “We have producers that are just getting ready to plant their crop, they’re just still starting their livestock production season so there still could be a shock.”

But, he tells Brownfield there are concerns. “I think one of the risks that producers face is really high production costs that it looks like we’re going to be able to offset with high income, but we need to see how the year wraps itself up,” he says.

Widmar says farm delinquencies and debt-to-asset ratios should be a good indicator of how farmers are handling higher costs and lower incomes.