USDA has been telling us for months now that farm income for 2023 will be lower than 2022. Their latest Farm Income Forecast Report shows a slightly brighter picture than their August predictions, but Farm Bureau economist Danny Munch says it’s still a significant drop.
“In the August reports, USDA forecasted that farm income from 2022 would drop 23 percent, a $41 billion drop from 2022. In this new November report, they adjusted that number to $31.8 billion, which is a 17 percent drop from 2022. In total, that would give you a total net farm income of $151 billion for 2023 compared to the $141 billion estimated previously in August.”
He talks about some of the main factors behind the revisions.
“The most significant revisions are attributable to lower production expenses compared to what they estimated in August. There’s still a $14.9 billion expected increase in what farmers are paying for production expenses, which is about four percent. But that’s seven percent lower than what they forecasted in the August release.”
Munch says there is some good news about the forecast.
“For all categories except fuels and oils, electricity and interest expenses, they adjusted their numbers downward. Things like fertilizer, pesticides, seeds, those all saw decreases from what they estimated that farmers will be paying.”
But there’s some bads news too. Electricity, fuels, oils, interest expenses all saw increases in this latest report. So those are things farmers are going to pay more for in 2023 than they estimated previously.
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Source: NAFB News Service
