U.S. net farm income is projected to hit a record $106.5 billion in 2022, largely due to high commodity prices stemming from the Ukrainian crisis. Even after costly inputs, farm income is projected to be 14% higher than last year and twice as high as 2019. Farm assets climbed 10% in value in 2021 and will likely climb another 10% this year, according to a USDA Farm Income Forecast.
Crops and livestock will generate $541.5 billion in cash receipts this year, up 24% from last year. Prices have also been bolstered by China’s return to the market in 2020. Meanwhile, expenses have climbed 18% this year, to a record $442 billion. Farm groups have kept a close pulse on rising inputs and have asked lawmakers to consider higher reference prices when factoring crop subsidies in the next farm bill.
