WASHINGTON D.C.: The U.S. Department of Agriculture reported that as producers are benefitting from high global grain and oilseed demand due to tight supplies, the subsequent surge in grain and livestock prices are predicted to drive U.S. farm incomes to historic highs this year.
The agency forecasts net farm incomes, a broad measure of profits in the agricultural economy, to rise to $160.5 billion in 2022, from $141.0 billion last year, an increase of $19.5 billion.
The agency said that a proportion of the growth in the crop sector was due to sales of corn, soybeans and wheat, while livestock cash sales receipts were also expected to jump nearly 31 percent to $256.0 billion.
Adjusted for inflation, net farm incomes in 2022 would be at its highest level since 1973 and net cash farm incomes at its highest level on record, the agency added.
However, the agency stressed that production costs are up considerably, with almost all categories of expenses predicted to be higher in 2022, most notably feed, fertilizers, lime and other soil-related inputs.