NAFB News Service
The University of Missouri’s Food and Agricultural Policy Research Institute Wednesday released its 2023 U.S. Agricultural Markets Outlook.
The report summarizes baseline projections for agricultural and biofuel markets prepared using market information available in January 2023.
The report finds that if weather conditions allow crop yields to return to trend-line levels in 2023, prices for corn, soybeans, wheat, cotton and many other crops will likely fall.
Higher input costs contributed to a sharp increase in farm production expenses in 2022. A smaller increase is projected in 2023, and lower prices for some inputs will reduce production costs in 2024 and 2025.
In 2023, most projected livestock sector prices will fall as supplies rebound and demand growth slows. The one major exception is cattle, where drought and other factors limit the number of animals available for slaughter.
Finally, net farm income reached a record level in nominal terms in 2022. The report projects net incomes to decline in 2023 and 2024 as receipts and payments fall.