USDA expects above average farm income in ‘23
The chief economist for the USDA says while farm incomes won’t reach the record levels of 2022 this year, the overall outlook for the farm economy is strong.
Seth Meyer tells Brownfield, “It would be hard to match 2022’s farm income,” he said. “When you look at 2023, our estimates are that it will be lower, but that it will remain above average.”
According to USDA data, U.S. net farm income was $162.7 billion last year and it’s expected to decline 15.9% in 2023.
He says some production costs have decreased modestly and that has helped. “While we may see some easing in fertilizer, feed prices, fuels and oils, it isn’t all the way back to where they were before we started having this price run in 2021.”
But, Meyer says market volatility continues to be a challenge. “Even though input prices are coming down, those output prices expect to come down more at this point.”
USDA says net cash farm income in 2023 is expected to be 15% above average.