USDA Says Farm Profits To Reach Near-Record High in 2022
ERS forecasts inflation-adjusted U.S. net cash farm income to increase by $13.5 billion year-over-year or 8.7%. Net cash farm income is gross cash income minus cash expenses and will reach $168.5 billion in 2022, the highest level since 2012. In comparison, net farm income is forecast to drop by almost $1 billion from 2021 to $147.7 billion this year. That drop comes after net farm income increased by $44 billion in 2021 to the highest level since 2013.
Net farm income is a broader measure of farm sector profitability that incorporates noncash items, including inventory changes, economic depreciation, and gross rental income. Both cash receipts and expenses are forecast to increase. Cash receipts for farm commodities are projected to rise by $66.3 billion or 14% from the previous year to reach $525.3 billion this year. Production expenses will also increase by $44 billion to $437.3 billion.
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