Based on USDA-ERS’s Farm Sector Income projections published August 31, 2023, U.S. net farm income[1] would reach $141.3 billion in 2023, down $41.7 billion (22.8%) from 2022 ($183.0 billion); however, the projected net income would be $40.0 billion above the estimated 10-year average.

U.S. cash receipts in 2023 calendar year are forecast to decline 23.0 billion (4.3%) to $513.6 billion from the previous calendar year ($536.6 billion) (Figure 1). As indicated by USDA-ERS, this decline is mainly price driven as it has a projected negative price effect of $20.3 billion and a forecasted negative quantity effect of $3.8 billion. There is a $1.1 billion positive effect in cash receipts from forecasts for commodities whose price and quantity effects could not be separately determined. Crop receipts are projected to drop to $267.0 billion, down 4.0% from 2022[2] ($278.1 billion). According to USDA, U.S. corn cash receipts in 2023 calendar year are forecast to decline 9.6% to $80.0 billion, while the forecast for U.S. soybeans cash receipts in 2023 indicates a reduction of 8.6% to $57.0 billion year-over-year. For corn, the...