USDA Projects 2023 Farm Income to Fall More Than 25%

USDA released its August 2023 Farm Income Forecast, casting a stark projection of a $41.7 billion loss in year-over-year income. While 2022 was a record-setting year at $183 billion in net farm income, the inflation-included 25.4% loss is still higher than the 20-year average. Net cash farm income is expected to fall 26.5% or $53.6 billion from 2022 but will still be 7% higher than the 20-year average.

USDA says lower government payments and high input costs are driving the declines. Direct government payments are forecast to be $2.9 billion lower than last year, primarily due to a lesser need for disaster assistance in 2023. Meanwhile, production costs are expected to be up 6.9% to $458 billion in 2023, led by higher interest rates and livestock and poultry purchases.

Read more on USDA’s 2023 farm income projections here.