Following Record Highs In 2021 And 2022, USDA Forecasts Farm Income To Fall 18%


Source: USDA news release

After reaching recent highs in 2021 and 2022, the average net cash income (gross cash income minus cash expenses) of U.S. farm businesses is expected to decline by 18 percent in 2023 compared with 2022.

Farm businesses across the country are forecast to see higher production expenses, lower cash receipts, and lower Government payments in 2023, resulting in lower expected average net cash farm income. However, this overall decline will vary considerably across the country, driven primarily by the commodities produced in each resource region.

The USDA, Economic Research Service (ERS) uses resource regions to depict the geographic specialization in production of U.S. commodities. ERS defines farm businesses as the operations with gross cash farm income of at least $350,000 or smaller operations in which farming is reported as the operator’s primary occupation, which includes just over half of all U.S. farms.

Farm businesses in the Northern Crescent region, which leads the Nation in dairy production, are forecast to see the largest average percentage decrease (30 percent), while those in the Mississippi Portal, which leads the Nation in rice production, are forecast to see the smallest percent decrease (9 percent).