American farmer sees income fall

After a record year in 2022, US farm income is likely to decline this year. Last year, the net income of the agricultural sector reached $183 billion. This year revenues are expected to be $148,5 billion. 

Despite the sharp decline, it is quite time for a very good year for the sector. The income of which is still well above the ten-year average. The price drop this year can be explained by significantly lower prices for soybeans, maize and wheat, among other things. Total crop yields are expected to fall 4% to $267 billion. Animal product revenues fell 4,6% to $246,6 billion. Revenues for milk, broilers, eggs and pigs decreased, while farmers are likely to receive more money for cattle/calves and turkeys. 

Last year, the US agricultural sector benefited from strong global demand and supply chain problems caused by the Russian invasion of Ukraine, which also drove up commodity prices. Production costs rose for the fifth year in a row, reaching a record high of $458 billion.

Despite this, the sector's equity has grown by almost 8%. The assets increase in value faster than the debts that the farmers accumulate.

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