The U.S. farm incomes are expected to go up this year, as producers benefit from strong global grain and oilseed demand amid tight supplies, the U.S. Department of Agriculture reported on Thursday.
Net farm income is expected to increase to $160.5 billion in 2022 from $19.5 billion a year ago, according to the agency.
The agency noted that livestock cash sales receipts were expected to jump nearly 31% to $256.0 billion due to sales of corn, soybeans and wheat.
Net farm income would be at its highest level since 1973 and net cash farm income at its highest level on record in the year 2022, the agency said.
Net cash farm income and net farm income are based on how the agency accounts for farm income.
Net cash income is recorded in the year a commodity such as corn, soybeans or pork is sold. Net farm income is for the year it was produced and factors in such things as depreciation of assets, including farm equipment.
Production costs are up sharply, according to the agency. The agency said that nearly all of the categories of expenses are projected to be higher in 2022 in nominal terms, with feed and fertilizer, lime and other soil-related input purchases expected to see the largest dollar increases.
Fuel and oil expenses are projected to see the highest percentage increase - up 47.4% to $20.5 billion - followed closely by interest expenses, up 41% to $27.4 billion.
Farm debt is projected to increase 5.9% this year over last year, but falls 0.4% when adjusted for inflation.