The Department of Agriculture Thursday updated net farm income projections for 2022. Micheal Clements shares the details.
Clements: USDA’s Economic Research Service released its September 2022 Farm Income Forecast Thursday. American Farm Bureau Federation Economist Bernt Nelson says USDA revised farm income to be higher.
Nelson: Today's report adjusted the forecast for 2022 net farm income, up by $7.3 billion, or 5.2 percent from 2021. This follows an increase of $45.9 billion in 2021 from 2020. ERS also adjusted the February 4 net farm income projection for 2021, increasing the forecast in the September report by $21.3 billion, or nearly 30 percent.
Clements: While enjoying increased farm income, expenses are higher as well.
Nelson: The February report showed a 17 percent increase from 2021 to 2022 in total farm expenses. The September forecast increased total expenses 437.3 billion. The greatest increases in expenses came first from fertilizer up 41 percent, and second place was pesticides up 25 percent from last year. In third place, we have fuel costs increasing by 22 percent since 2021.
Clements: Nelson adds there’s been a lot of changes globally since the February report.
Nelson: I think the Russian invasion of Ukraine was really a wakeup call when we talk about a secure food supply. Disruptions caused by the invasion caused a spike in crop prices, and then they came way back down again. This is a result of our farmers, they really stepped up to the plate and production was good. This has caused some of our supply concerns to be mellowed out a little bit.
Clements: Micheal Clements, Washington.