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USDA Economist expects volatility but strong farm economy in 2023

USDA’s Chief Economist says the ag economy remains strong, but volatility will likely continue through 2023. 

Seth Meyer says there’s been an increase in farm income despite tighter margins. “Again, I don’t think it reduces the anxiety that now as I start buying inputs and planning for next year’s crops, input prices remain very, very high. We’ve got a lot of volatility on output prices, but can we sustain these levels of output prices?”

But, he tells Brownfield, there is some price support in the commodity markets for next season, which might help offset inputs. “We’ve seen input prices surge and, so far, output prices have kept in line, but again, that remains an area of concern looing forward to the next crop in terms of a return squeeze.”

Brownfield interviewed Meyer at the 2022 Kansas City Agribusiness Council Ag Outlook Forum presented by Agri-Pulse.