The USDA’s Economic Research Service (ERS) reported on Friday that “Net farm incomea large measure of the profits, should to diminish $5.4 billion (4.5%) from 2021 to $113.7 billion in 2022.”
“Net cash farm income is planned to to augment $1.9 billion (1.4%) to $136.1 billion in 2022after an expected increase of $17.0 billion (14.5%) in 2021. inflation-adjusted dollars2022 net farm income is expected to to diminish $9.7 billion (7.9%); net cash farm income should to diminish $2.9 billion (2.1 percent). ”
If realized, net farm income and net cash farm income in 2022 would remain above their 2001-2020 average (in real terms).
ERS pointed out that, “Overall, farm cash receipts are planned for to augment $29.3 billion (6.8%) to $461.9 billion in 2022 in nominal dollars; ” yet, “Direct government agricultural payments are projected at $11.7 billion in 2022, $15.5 billion (57.0 percent) to diminish compared to 2021 forecast levels.”
Friday’s update stated that “But the recipes should to augment $3.4 billion (4.8%) in 2022, resulting from higher quantities sold. Soy revenues in 2022 should to augment $4.6 billion (8.9%), as the expected growth in quantities sold should offset the effects of lower prices. »
ERS stated that “the USDA pandemic aid to producers, including the Coronavirus Food Assistance Program (CFAP), provides relief to producers whose operations are directly impacted by COVID-19. Payments per calendar year 2022 of these USDA programs are planned to $3.4 billion compared to $23.5 billion in 2020 and $7.8 billion in 2021.
“Non-USDA Pandemic Assistance (payments from Paycheck Protection Program (PPP), administered by the Small Business Administration), ended May 31, 2021 and no payments are expected in 2022.”
“Payments of agricultural invoice products under the Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) programs should decline $4.0 billion in 2021 over 2020, then another $1.9 billion in 2022 to reach $0.3 billion. BOW payments in 2022 are supposed to be $5.1 milliona to diminish $116.7 million from 2021 levels. APIs payments in 2022 are waiting $0.3 billiona to diminish $1.8 billion from 2021 levels.”
“Conservation payments financial assistance programs from the USDA Farm Service Agency (FSA) and the Natural Resources Conservation Service (NRCS) should be $4.2 billion in 2022, up 7.3% compared to 2021. The increase in conservation payments is due to slight increases in acres enrolled in the Conservation Reserve Program (CRP) and an increase in payments from NRCS programs.
Regarding production expenses, ERS noted that “Agricultural sector production expenditure— including expenses associated with operator accommodation — should be to augment $20.1 billion (5.1%) to reach $411.6 billion in 2022.”
Specifically, ERS pointed out that “Feeding coststhe the biggest single category of expenditure, should to augment in 2022 by 3.9 billion dollars (6.1%) in nominal terms to $68.9 billion due to higher feed prices.
“Fertilizer-lime-amendment expenses are expected to increase by $3.4 billion (12.0 percent) in nominal terms to $31.9 billion.