At the onset of 2021, the agriculture department’s chief economist, Seth Meyer, projected that farm income this year would drop from 2020. Thankfully he was wrong.
“Maybe I was being a little overly cautious at the beginning of the year,” Meyer says.
After all, government payments to farmers were set to be cut by over 40 percent this year, but demand for ag products has been very strong, pushing most commodity prices up and that farm income up 23 percent from 2020.
Now, for 2022, Meyer is telling producers, “We might ease off of what have been pretty good prices. So, expect a little bit of a softening on cash receipts.”
He says to expect costs for fertilizers, fuel, and other inputs to continue very high, eating away at margins.
With 2021 being so profitable, Meyer says, “You’re in a good position to weather what are going to be those increasing input costs in the new year.”
Hopefully, Meyer will be wrong again in 2022. He says he’d be “happy” to be wrong again.
Source: USDA Radio Newsline