2023 Missouri Farm Income Retreats From 2022 Record High But Remains Strong

The fall 2023 farm income report indicates a decrease in state net farm income, driven by weather, production expenses and falling crop receipts.

Missouri net farm income sees a backslide from record-setting levels in 2022, according to the fall 2023 Missouri Farm Income Outlook report released by the Rural and Farm Finance Policy Analysis Center (RaFF) at the University of Missouri.

The farm income report provides comprehensive insights into changes in the state’s farm receipts, production expenses, government payments and other key factors that impact net farm income. The report suggests that declining crop receipts and stubborn production expenses are contributors to the $530 million decrease in net farm income for 2023.

“Weather is another factor that has influenced the reduction in crop yields and cattle inventory in many parts of Missouri,” said Scott Brown, RaFF interim director. “And that has led to the projection of lower cash receipts in 2023.”

The report indicates that an 11% decrease in net farm income is projected to occur in Missouri this year, compared to a 23% decrease in net farm income nationally.

Other projections from the fall 2023 Missouri Farm Income Outlook include:

• Statewide planted crop area exceeded 14 million acres in 2023. Total crop receipts are expected to decrease by $840 million in 2023, largely due to declining commodity prices and lower yields.
• Livestock receipts increase marginally in 2023. Although cattle receipts see a $550 million bump due to strong cattle prices, declines in hog, dairy and poultry receipts offset major gains in overall livestock receipts.
• Production expenses remain stubbornly high, increasing $470 million in 2023. Despite small decreases for fertilizer, feed and fuel expenses, costs for purchased livestock, seed, interest and other production inputs increase.

The Missouri Farm Income Outlook is one of multiple state-level farm income analyses published by RaFF this fall. The center collaborates with land-grant institutions in Arkansas, Kansas and Nebraska to develop farm income projections with local expertise.

“Insights developed through our farm income projections help us better understand the uniqueness of farm income factors regionally,” said Brown. “State-level analyses like the Missouri farm income report can help producers, policymakers and stakeholders alike be equipped with information to make sound decisions that impact agriculture.”

The full report and data tables can be found at https://ruralandfarmfinance.com/publications/#farm-income-estimates ∆