U.S. Farm Income Expected to Drop by $42 Billion, USDA Reports

The U.S. Department of Agriculture Economic Research Service’s forecast for August 2023 indicates a significant decrease in net farm incomes, with a drop of $41.78 billion or 22.8%. This decline follows a record-breaking year in 2022, where net farm income reached $183 billion, marking a 30.7% rise from 2021. Additionally, net cash farm income in 2022 was at an impressive $202.2 billion, 35.4% higher than the previous year. However, for 2023, this income is projected to plunge by 26.5%. Inflation-adjusted data suggests that even with these drops, income metrics are expected to remain above the two-decade averages. Expenses are also rising, with production costs expected to grow by 6.9% in the next year. While crop receipts may decrease, certain vegetables and melons may see revenue increases. Animal product receipts present a mixed picture, with some products facing declines and others predicting growth. Lastly, government farm payments are set to decrease by 19% from 2022 levels.