FAPRI estimates rising near-term farm income
An ag economic service is estimating higher farm incomes this marketing year.
Head of the University of Missouri’s Food and Agricultural Policy Research Institute Pat Westhoff tells Brownfield expected strong global demand for U.S. ag goods and production concerns from competitors has U.S. ag producers positioned for the highest farm income since 2013.
“That results in a much higher level of farm income than we would’ve said previously,” Westhoff said. “Prices moderate in front of us, and farm income falls back again in subsequent years.”
Westhoff said overall farm income increased nearly 30 percent over 2021. He said most crops and hogs saw strong gains over the last year while cattle saw little movement.
“[The] value of farm debts to the value of farm assets is actually down in 2021 for the first time in several years,” Westhoff said. “So, that’s a positive sign for the overall health of the farm economy, and that could happen again in 2022 as well.”
FAPRI is projecting corn’s marketing year average price to come in at $5.34 per bushel which would be the highest annual U.S. corn price since 2012.
Westhoff said farm income is difficult to accurately predict because of large question marks like trade levels with China and weather. FAPRI’s estimates were based on farm legislation and economic factors from the end of August.