FAPRI forecast: lower farm income in 2023
University of Missouri’s Food and Agriculture Policy Research Institute is forecasting lower U.S. farm income this year.
FAPRI Director Pat Westhoff says if farmers raise an average crop, commodity prices could be pressured.
“We’re talking corn prices in the low $5 range and soybean prices in the $12 range for the crops harvested this fall. It’s all contingent on lots of things happening between now and then. If we have a weather event, that could change this outlook.”
FAPRI is expecting a mixed outlook for fertilizer, fuel and feed prices. Westhoff says the timing of purchases as well as rising interest rates for farm loans will play a factor in costs.
“People have to borrow money to put in a crop, which is a lot of producers. Other categories have gone up in costs as well this year,” he says. “When you put it all together for the average grain and oilseed producer, we’re talking about an overall cost of production very similar to last year.”
Westhoff says lawmakers will reference this data as they write the next farm bill. Read the outlook.