2022 Could Be a Bit More Challenging

Right after 2021 began, the USDA's Chief Economist, Seth Meyer, projected that farm income this year would drop from 2020, but happily for everybody, he was wrong.

"Maybe I was being overly cautious at the beginning of the year."

After all, government payments to farmers were set to be cut by over 40% this year, but demand for ag products has been strong; pushing most commodity prices up and net farm income up 23% from 2020.  Now, for '22, Seth Meyer is telling producers:

"We might ease off what has been pretty good prices.  So expect a little bit of softening on cash received."

And, he says, expect costs for fertilizers, fuel and other inputs to continue very high; eating away at margins. However, because 2021 has been so profitable.

"We're in a good position to weather what are going to be those increasing input costs in the new year."

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekmedia.com