USDA forecasts decreased farm income in 2023

The USDA’s November Farm Income Forecast has revised its outlook for 2023, indicating a downturn in farm income compared to 2022.  

The updated forecast shows a reduction in net farm income by 17%, amounting to a $31.8 billion decrease, which is a revision from the previously estimated $41 billion decrease projected in August. 

This adjustment results in a total net farm income of $151 billion for 2023, compared to the initial $141 billion forecast.  

The change is attributed to lower-than-expected production expenses, which, despite the decrease, are still anticipated to rise by $14.9 billion, or about 4%. This increase in expenses is lower than the 7% hike forecasted in August. 

The updated forecast reflects lower costs in areas such as fertilizers, pesticides, and seeds, while expenses for electricity, fuels, oils, and interest payments are expected to see an uptick.  

The overall financial scenario for the agricultural sector appears to be a blend of modest relief in some areas and increased costs in others, pointing to a challenging economic landscape for farmers in 2023.