Minnesota net farm income second highest on record in 2021
Minnesota net farm income was nearly record high in 2021.
University of Minnesota Extension economist Pauline Van Nurden says their annual report takes cash inflows and outflows, income, expenses, and capital purchases into account.
“The 2021 year actually ranks second among the historical records. The other year that was higher was 2012.”
She tells Brownfield high commodity prices have been the primary driver as median net farm income reached $166,262 in 2021.
Crop farms averaged just over $210,000 a year ago, while pork producers earned an average of $429,420. For beef producers, median net farm income was nearly $78,000, and Minnesota dairies averaged $127,444.
Van Nurden calls the outlook for 2022 very uncertain.
“We certainly have good crop prices. The question is, how much have farms prepaid? And what inputs do they have locked in? Feed prices aren’t going to go down for our livestock producers. The availability of chemicals and fertilizer (is another question).”
Farmers who participate in the report represent about 10 percent of Minnesota farms that have gross incomes of more than $250,000 annually.