This week, the USDA estimated national farm income will fall slightly compared to 2021, but it will remain 42 percent above the 10-year average.
This week, the USDA estimated national farm income will fall slightly compared to 2021, but it will remain 42 percent above the 10-year average.
Transcript
This week, the USDA estimated national farm income will fall slightly compared to 2021, but it will remain 42 percent above the 10-year average.
Cash receipts from the sale of agricultural commodities are expected to surpass $525 billion, an increase of 21 percent compared to last year, driven mostly by continued high demand.
While cash receipts are expected to grow, net income is projected to fall slightly due to high input costs and a 50 percent drop in direct government payments to farmers. Net farm income includes farm and non-farm income as well as government payments.
Production costs are estimated to increase over 17 percent for this year. A 44 percent jump in fertilizer prices is the primary driver of the overall move higher. Adjusted for inflation, the increase in the cost of doing business in 2021 is the highest in nearly a decade.
Roughly half of the farms in the United States do not depend on farm activities for their primary income, and result in the median farm revenue numbers are expected to show a small loss for 2022.
For Market to Market, I’m Peter Tubbs.
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