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Grain Farmers’ Income in 2022 May Decrease Significantly

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Grain Farmers’ Income in 2022 May Decrease Significantly

After forecasting record grain farm income in 2021, the ag economist at the University of Illinois says that numbers are likely to decline significantly in 2022.

Gary Schnitkey outlines three corn and soybean pricing scenarios that take into account the current fall bid for 2022 crops, higher input costs, and next year’s trendline yields. He states that the optimistic scenario is $ 5 corn and $ 12 soybeans, leading to a net farm income of $ 130,000.

“It’s above the 2014-2019 average, with incomes worth $ 75,000 to $ 80,000, but to reach that, corn will be priced at $ 5 and soybeans will be priced at $ 12. is needed.”

Based on USDA’s estimated 2022 prices of $ 4.80 for corn and $ 10.50 for soybeans, Schnitcky says the farm’s net income will drop to $ 57,000.

“They predict soybean prices that are much lower than the current market average, so if you’re thinking of planting more soybeans, you might want to hedge those soybeans right now. “

And when Schnitkey drops prices to the 2015-2019 average of $ 4 corn and $ 10.00 soybeans, farmers’ income in 2022 will rise. Negative $ 65,000.

“Going back there, it’s not a good scenario, and there are cost savings associated with it.”

USDA will release its first 2022 agricultural income forecast in February.



Grain Farmers’ Income in 2022 May Decrease Significantly

https://brownfieldagnews.com/news/significant-decline-likely-for-grain-farm-income-in-2022/ Grain Farmers’ Income in 2022 May Decrease Significantly

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