The U.S. Department of Agriculture said that producers are benefitting from high global grain and oilseed demand due to tight supplies, and that the surge in grain and livestock prices is predicted to drive U.S. farm incomes to historic highs this year.
Net farm incomes, a broad measure of profits in the agricultural economy, is expected to rise to $160.5 billion in 2022, from $141.0 billion last year, an increase of $19.5 billion.
The agency said that a portion of the growth in the crop sector was due to sales of corn, soybeans and wheat, while livestock cash sales receipts were expected to jump nearly 31 percent to $256.0 billion.
Net farm incomes would be at its highest level since 1973 and net cash farm incomes at its highest level on record in 2022, the agency said.
In 2022, the agency stressed that production costs are up considerably, with almost all of the expenses predicted to be higher, most notably feed, fertilizers, lime and other soil-related inputs.