Rapidly rising grain and livestock farm gate prices are forecast to boost US farm incomes to historic highs this year, as farmers benefit from strong global demand for grains and oilseeds amid tightening supplies, the US Department of Agriculture said.
Net farm income, which the Department says is a measure of profit in the agricultural economy, is projected to increase from $141 billion to $160.5 billion in 2022.
Highest net income in five decades
The growth in the crop sector is mainly driven by sales of corn, soy and wheat. Net livestock sales revenues are expected to increase by almost 31% to USD 256 billion. USD. Taking into account various factors, net farm income would be the highest in five decades (since 1973).
According to the Department, production costs have also increased significantly. The nominal value of almost all categories of expenditure is projected to be higher in 2022. Farmers’ debt will increase to 5.9 percent, but will be 0.4 percent lower when inflation is taken into account, analysts say.
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