Economist expects a positive crop year in terms of farm income
Purdue Ag Economist Jim Mintert says the latest supply and demand estimates suggest it will be a positive crop year in terms of farm income in Indiana.
“If you look at income level projections, the 2021 crop year income on a per acre basis for a fairly typical corn and soybean operation is going to be around double what it was coming off of the 2020 crop year,” he says. “2022 crop forecasts are down back to where we were in 2020. But, from an income perspective this puts farm income very close to where we were back in 2011 and 2012, so it’s going to be a positive income year for most corn and soybean farmers here in Indiana.”
He says farm income will likely have a positive impact on cash rent.
“Cash rents this year went up and the Purdue Land Value Survey had it up between 4-5 percent on a statewide basis this year,” he says. “We’re estimating we’re going to see another round of increases in cash rent based on positive income numbers. It’s a little early to actually forecast the magnitude of the increase but it will probably be at least five percent and maybe a little bit more based on what’s taken place so far.”
Mintert says other ag inputs are rising. He says fertilizer costs, for example, have gone up significantly compared to last year and will likely rise again next year as well.
Brownfield interviewed Mintert during the recent Purdue Panel at the Indiana State Fair.