USDA’s most recent Farm Sector Income Forecast, released Feb. 7, anticipates a decrease in net farm income for 2023. U.S. net farm income, a broad measure of farm profitability, is currently forecast at $136.9 billion, down 15.9% from 2022’s $162.7 billion. This $25.9 billion decline erases the $21.9 billion increase that was forecast between 2021 and 2022 but is smaller than the gain between 2020 and 2021 of $46.5 billion following the COVID-19 pandemic.

When adjusted for inflation, 2023 net farm income is expected to decrease $30.5 billion (18.2%). The report expects farm and ranch production expenses to continue to increase by $18.2 billion (4.1%) in 2023 to $459.5 billion, following a record increase of $70 billion in production expenses in 2022.

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