Farm production expenses are up again, and net cash farm income is down. However, there is still some good economic news as 2023 moves towards the finish line.
Farm production costs are forecast to jump another three-and-a-half percent this year, with interest and livestock costs making up most of that. However, there is a silver lining with some input costs leveling out.
That’s USDA Chief Economist Seth Meyer who tells USDA Radio that farmers will have spent 14 percent less for fertilizer this year, and less for pesticides, fuel, and livestock feed. Net cash farm income, though, is expected to fall.
Spiro Stefano heads USDA’s Economic Research Service.
With increased farm production costs weighing heavily on producers United States Senator Chuck Grassley (R-IA) says the economic strain highlights the need for updated reference prices in a new five-year farm bill.
Senator Grassley made his comments during his weekly ag conference call with farm broadcasters and reporters.
