September 9, 2022
The latest USDA's "Farm Income Forecast" is forecasting net farm income, a broad measure of farm profitability, at $147.4 billion for 2022, an increase of $7.3 billion (5.2 %) compared to 2021.
Net cash farm income is forecast at $168.5 billion for 2022, an increase of $22.1 billion (15.1%) over 2021. The 2022 net cash farm income is 34.5% above its 2002-2021 average of $125.3 billion. USDA defines net cash farm income as "cash receipts from farming as well as farm-related income (including government payments) minus cash expenses."
Cash receipts from the sale of agricultural commodities in 2022 is forecast at $525.3 billion, an increase of $91.7 billion or 21.2%. Total crop receipts are forecast to increase by $36.4 billion (15.3%) over last year because of higher receipts for corn, soybeans and wheat. Animal and animal products total receipts are expected to be $55.3 billion (28.3% over last year. 2022 total cash receipts will hit a level record, even when adjusted for inflation.
Direct government payments are forecast at $13.0 billion, a drop of $12.8 billion (49.7%). This is a result of lower supplemental and ad hoc disaster assistance for COVID-19 relief.
Total production expenses are forecast to increase to $437.3 billion (up 17.8%), with fertilizer prices being the largest increase, up 44%.
The Senate returned this week from its August recess, and the House will return next week with a number of pre-election issues on the agenda before they go back in recess until after the election.
The major item is completing a continuing resolution by Sept. 30 to avoid a government shutdown. The House leadership is working on a CR that will fund the government through Dec.16. The House has passed six of the 12 appropriations bills, while the Senate has not passed a single bill.
Other items include the annual renewal of the National Defense Authorization Act, reauthorization of the Trade Promotion Authority and tax extenders.
Senate Finance Committee approves McKalip's nomination
The Senate Finance Committee unanimously approved Doug McKalip's nomination to serve as U.S. Trade Representative's Chief Agricultural Negotiator.
Farmers for Free Trade in a statement said, "We applaud the Senate Finance Committee for unanimously moving Mr. McKalip's nomination forward to the full Senate. It's abundantly clear that there is bipartisan momentum behind both his nomination and the need to open markets for American farmers who rely on trade. Our nation's ag trade negotiator is a critical voice for expanding access into new markets for food and ag."
Dan Halstrom, president and CEO of the U.S. Meat Export Federation, said, "In addition to USTR's ongoing efforts to improve and maintain international market access for U.S. red meat, several new Biden administration trade initiatives are underway that will benefit from Mr. McKalip's agricultural experience and expertise. USMEF thanks the Senate Finance Committee for advancing his nomination and we urge prompt approval by the full Senate."
USDA Farm Census
The USDA's National Agricultural Statistics Service will be mailing the 2022 Census of Agriculture to producers this fall. The census will include farm operations of all sizes, urban and rural, which produced or sold $1,000 or more in agricultural products in 2022.
NASS Administrator Hubert Hamer said, "Census of Agriculture data are widely used by federal and local governments, agribusinesses, trade associations, Extension educators and many others to inform decisions about policy and farm programs and services that aid producers and rural communities. By responding to the Census of Agriculture – by being represented in these important data – producers are literally helping to shape their futures."
The census is conducted every five years by NASS.
Source: P. Scott Shearer, who is solely responsible for the information provided, and wholly owns the information. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset. The opinions of this writer are not necessarily those of Farm Progress/Informa.
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