FAPRI-MU projecting strong farm incomes
A group of leading ag economists is projecting strong net farm incomes for the next couple years.
John Kruse is with the University of Missouri’s Food and Agricultural Policy Research Institute…
“We’ve got very strong commodity prices that’s leading us to very strong net farm income levels,” Kruse said. “We have to keep an eye on our fuel and fertilizer expenses on that side, and possibly labor here.”
He said the Russian – Ukrainian war has been the main market driver for grains noting tight ending stocks expectations, but livestock prices are finding support too.
Kruse tells Brownfield higher feed costs for livestock have been somewhat offset by gains in the export market, especially with strong Chinese demand for U.S. pork.
“And it’s really given us some strong growth,” he said. “The other thing has been the strength of U.S. pork demand, in general, for U.S. consumers.”
He said the U.S. has seen a ‘remarkable’ growth period in per capita meat consumption.
Kruse said the main risk for grain income beyond two years is an influx of supply, while disease pressures are the leading concern for livestock incomes.
Brownfield interviewed Kruse at the University of Missouri Abner Womack Missouri Agriculture Outlook Conference Wednesday.