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Smaller farm incomes projected for 2023

High production costs and lower commodity prices are expected to cause a decline in farm income in 2023.

University of Illinois Ag Economist Nick Paulson says farmers should remain profitable, but income will likely come down from the high levels seen the past few years.

 “Once commodity prices start to come down, production costs might continue to go up and I think that is the phase we are expecting to be in for 2023. It will probably be 2024 or 2025 before we can expect some of those costs to either adjust down or at least stay at the same level.”

Paulson says the USDA and National Budget Office are projecting more moderate long term corn and soybean prices.

“They are indicated that farmers should probably be planning for a return to a longer run corn price in that low to mid $4.00 range and soybean prices probably getting back down into the $12.00 range. So, whether that plays out or not we don’t know, but it is probably something that farmers should factor into their decision making.”

Paulson says when comes to crop budgets and acreage decisions, their data shows it’s a coin toss this year on which crop will provide a greater return in Illinois.  

Brownfield interviewed Paulson during the Illinois Farm Economics Summit in Mt. Vernon Tuesday.

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