Farm Income to Drop from 2022 Record
•December 20, 2023•
by Tammie Sloup
FarmWeek
Farm income is forecast to shrink in 2023 after climbing to record highs in 2022.
USDA’s Economic Research Service released its Farm Sector Income Forecast Nov. 30, which estimated net farm income to fall by $31.8 billion (17.4%) to $151.1 billion in 2023.
Net farm income — a broad measure of profits — reached $182 billion in 2022, increasing 30% from 2021.
In September, USDA estimated net farm income at $141.3 billion. (Net farm income reflects income after expenses from production in the current year and is calculated by subtracting farm expenses from gross farm income).
The net farm income reflects overall lower crop and livestock cash receipts, increased input costs, higher interest rates and declining government payments.