Meyer Doesn’t Expect Record Income In 2023
Will the nation's farm sector generate yet another record amount of net income in 2023 as it's done the last two years?
“No, but the expectation is it will still be an above average year.”
USDA chief economist Seth Meyer told the USDA Outlook Forum last week that he expects net cash farm income this year to be $150.5 billion, which, if realized, would be down almost 23% from this last year's record.
Why the drop?
“Commodity prices falling, input prices rising but slower, government payments pulling back from those pandemic payments.”
Meyer says when you boil it all down, producers are going to need to determine how do input prices follow those output prices down. He noted fuel expenses are expected to fall by about 15% this year, rents are expected to drop by 8%, while other expenses could remain elevated, or even increase.
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