The U.S. farmers will experience reduced income this year

Farmers in the U.S. will experience a reduction in their incomes this year. This is the first time since 2019, […]

Farmers in the U.S. will experience a reduction in their incomes this year. This is the first time since 2019, and it is due to the higher production costs, a drop in direct government payments, and cash prices for commodity crops and livestock easing back from historic highs, according to a report from the USDA.

The net farm income (a broad measure of profits in the agricultural economy) is expected to reach $136.9 billion in 2023 in nominal dollars, which is down nearly 16% from a year earlier.

The report indicated that:

• The drop follows 2022 net farm income hitting a high of $162.7 billion in nominal dollars and $140.9 billion in 2021.
• When adjusted for inflation, net farm income is forecast to fall $30.5 billion, or 18.2%, in 2023 compared with a year earlier.
• As farm incomes fall and expenses rise, economists say, that squeeze may make producers more cautious about trying to expand their crop production operations or spending more on machinery or land at a time of low global grain supplies.

Much of the income pressure in the crop sector came from lower prices of