News

Survey: producers expect lower farm income in ’22

Some producers expect the farm’s financial performance in 2022 to be weaker than in 2021, according to the latest Ag Economy Barometer.

Jim Mintert is the director of the Purdue University Center for Commercial Agriculture.

“The question as we turn the corner into January flips and instead of comparing 2021 to 2020, the question now says to compare 2022 to 2021,” he says. “So, that sharp decline in the Financial Performance Index that we’re picking reflects the fact that producers are telling us they expect to see income drop quite a bit in 2022 compared to 2021.”

The Farm Financial Performance Index fell to a reading of 83, a 30 percent decline compared to a year ago and 27 percent lower than in December.

He tells Brownfield “most years it wouldn’t be that stark but if you look at the rise in input costs this year it’s a reflection of people being very concerned about what it’s going to cost to produce corn, soybeans, wheat, pork, and beef.”

The Farm Capital Investment Index fell slightly this month. Mintert says that suggests farmers don’t think it’s a great time to make investments because of higher prices and availability concerns. 

Each January the barometer includes a question asking producers if they expect their farm’s operating loan to be smaller, about the same, or larger than last year. Nearly 30 percent of farmers surveyed expect to have a larger operating loan in 2022.

The Purdue University/CME Group Ag Economy Barometer is a monthly national survey of 400 U.S. ag producers.

Audio: Jim Mintert