While farmers saw record-high profits in 2022, expenses are set to rise even higher in 2023. The Economic Research Service’s “Farm Sector Income Forecast” report slated net farm income at $136.9 billion compared to $162.7 billion last year. Net farm income has increased 19% in the last two years to the highest level on record. But despite the rise in come, decreases in earnings should be expected this year due to production expenses. Crop receipts are pegged to fall by $8.9 billion. But because of farmers looking to store more crops on the farm, crop values could increase by $7.2 billion.

Wheat production could be the outlier, with a potential 4% rise in receipts partly due to USDA’s increase in wheat planting and a significant increase in quality, drought withstanding. As the volatility continues, more farms will be supported by off-farm income in 2023.

Read more on 2023 profitability here.