Inflation to Impact 2023 Net Farm Income

Ongoing inflationary pressures will once again impact this year’s total farm income. While high commodity prices offer relief, farmers’ balance sheets will tighten with heightened expenses across the industry. While many producers avoided 2022’s high fertilizer prices by purchasing ahead of time in 2021, growers will pay more out of pocket this year than ever before.

According to a national economist, the overall economy outside of the agriculture industry has been operating at a higher level following the height of the COVID-19 pandemic, leading to “remarkably high” demand for food, feed and fuel. Supply chain and drought challenges have made the industry struggle to keep pace with the high demand. Looking ahead, economists expect the inflationary pressure to ease, but that doesn’t mean costs will decline.

Read more on 2023 farm income here.