U.S. farm incomes seen hovering to new highs on international meals, feed demand By Reuters

By P.J. Huffstutter

CHICAGO (Reuters) – Hovering grain and livestock costs are anticipated to push U.S. farm incomes to a historic excessive this 12 months, as producers profit from sturdy international grain and oilseed demand amid tight provides, the U.S. Division of Agriculture reported on Thursday.

Internet farm revenue – which is a broad measure of earnings within the agricultural economic system, in accordance with the company – is forecast to extend to $160.5 billion in 2022 from $141.0 billion a 12 months earlier, a rise of $19.5 billion.

A lot of the expansion within the crop sector got here from gross sales of corn, soybeans and wheat, the company mentioned, noting that livestock money gross sales receipts have been additionally anticipated to leap practically 31% to $256.0 billion.

In inflation-adjusted 2022 {dollars}, web farm revenue could be at its highest stage since 1973 and web money farm revenue at its highest stage on report, the company mentioned.

The distinction between web money farm revenue and web farm revenue relies on how the company accounts for farm revenue.

Internet money revenue is recorded within the 12 months a commodity reminiscent of corn, soybeans or pork is offered. Internet farm revenue is for the 12 months it was produced, and components in things like depreciation of belongings, together with farm gear.

Manufacturing prices are up sharply, too, the company reported. Almost all classes of bills are forecast to be increased in 2022 in nominal phrases, the company mentioned, with feed and fertilizer, lime and different soil-related enter purchases anticipated to see the biggest greenback will increase.

Gas and oil bills are forecast to see the best share improve – up 47.4% to $20.5 billion – adopted carefully by curiosity bills, up 41% to $27.4 billion.

Farm debt in nominal phrases is forecast to extend 5.9% this 12 months over final – however fall 0.4% when adjusted for inflation.

(This story has been corrected to repair 2021 web farm revenue determine in paragraph 2)