December Farm Income Forecast Shows Higher Profits
Net farm income for U.S. farmers is forecast at $160.5 billion in 2022, a $19.5 billion increase over 2021. The December Farm Sector Income and Finances report shows net cash farm income forecast at $187.9 billion in 2022, $29 billion higher than in 2021. Cash receipts from agricultural commodity sales will increase by $105 billion from 2021 to $541.5 billion this year. However, farm sector debt will increase by $27.8 billion in 2022 to almost $502 billion.
Farm sector debt-to-asset levels will improve from 13.5% last year to 13% this year. Working capital, the amount of available cash to fund operating expenses after paying off debt due within 12 months, will rise 4.7% in nominal dollars but drop 1.4% when adjusted for inflation.
Dairy farms will likely see the biggest jump in average net cash farm income, while specialty crops, cotton, and hogs the biggest decline.
If you have a story idea for the PNW Ag Network, call (509) 547-9791, or e-mail firstname.lastname@example.org