Experts say farm income will fall this year, but growers can still profit
The cost of everything is skyrocketing right now. That means farm commodities are bringing in higher prices, but farmers also had to pay more just to plant them.
The general inflation rate is 8.6 percent. Experts say farmers are seeing at least twice that on seed and fertilizer with rates from 13 to 40 percent higher.
Dr. Joe Outlaw, with the Department of Ag Economics of Texas A&M, explains what farm income will look like this year.
“While some producers were able to benefit by locking in input prices early in 2021 for this year’s crop, most have indicated a very little ability to do so.”
Net income for farmers is expected to fall 4.5 percent, but most will still turn a profit. It will just be less than last year when several government payments supplemented income.