Falling Commodity Prices and Rising Costs Squeeze U.S. Farm Incomes

U.S. farm income is falling from record highs due to declining commodity prices, trade issues, and higher costs squeezing profits. Net farm income is expected to be $118.2 billion in 2023, down from $162 billion in 2022.

Prices for grain and oil crops like corn and soybeans have fallen sharply while costs for fertilizer, fuel, and other supplies remain high, squeezing farm profits.

The number of farms and amount of farmland in Missouri is declining faster than the national average as smaller producers in particular are being squeezed.

Cattle prices are increasing due to the national herd being at its lowest level since the 1960s, while hog and chicken numbers are also falling.

Food price inflation for consumers should ease somewhat but grocery prices are unlikely to decline much as the farm commodity share of retail food costs is small.