USDA: Farm Profits To Reach Near-Record High in 2022
USDA’s Economic Research Service forecasts inflation-adjusted U.S. net cash farm income to increase by $13.5 billion or 8.7 percent this year from 2021. 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 non-cash 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 percent from the previous year to reach $525.3 billion this year. Production expenses will also increase by $44 billion to $437.3 billion.