by PJ Huffstutter
chicagoFebruary 7 – United States Department of Agriculture (USDA) forecast on Tuesday that farm industry earnings would decline this year for the first time since 2019 due to a rise in production spending, a reduction in government aid and a drop in grain and meat prices since record highs.
The net income of the agriculture sector is expected to reach $136.9 billion in nominal value in 2023, about 16% less than the previous year. USDA,
The decline follows net farm income for 2022 projected at $162.7 billion in nominal values and $140.9 billion in 2021, the agency said.
Adjusted for inflation, net farm income is projected to decline by $30.5 billion in 2023, or 18.2% from the previous year.
As farm incomes decline and expenses rise, economists say, at a time of low global grain supply, producers will be more cautious about trying to expand their farm operations, or spending more on machinery or land. Can be
Much of the pressure on revenue in the agriculture sector came from lower prices for the sale of raw materials, particularly corn and soybeans, and these lower prices offset higher quantities sold, it added USDA,
The US Department of Agriculture also noted a decline in the prices farmers received for the sale of dairy products, hogs, broilers and chicken eggs.