U.S. Farm Income to Slump by 23% in 2023, USDA Reports

The USDA Economic Research Service has released its August 2023 Farm Income Forecast, indicating a projected decrease in net farm income by $41.7 billion, or 22.8% YoY. After a record-breaking 2022 with net farm income reaching $183 billion, this year’s downturn, adjusted for inflation, is equivalent to a $48 billion or 25.4% decrease. Despite this drop, 2023’s net farm income is still predicted to surpass the 20-year average by 22.6% in inflation-adjusted terms. Factors influencing this decline include a 4.3% drop in cash receipts, reduced government payments, and a 6.9% surge in production expenses.