University of Illinois Crop Budgets Show 2023 Farm Profit to Drop 80%

Farmer profit trends are slated to be significantly lower in 2023. How much lower? A staggering 80%, according to the University of Illinois. As farmers continue facing unprecedented inflation on machine parts, fuel, labor and other inputs, economists also project continued supply disruptions amidst Russia’s ongoing invasion of Ukraine.

Non-land costs for farmers have increased dramatically from 2020 in Illinois, going from $577 per acre to $860. Due to increased costs, break-even prices rising substantially, even amidst healthy commodity prices. The projected $29 per acre IL farmer return for next year is much closer to 2013 – 2019 levels. While profit is expected to decrease substantially, positive returns are still expected.

Read more on 2023 farm profitability levels here.