July 14, 2024

Economic Research Service: Farm Income Decline Varies by Region


After reaching recent highs in 2021 and 2022, the average net cash income of U.S. farm businesses is expected to decline by 18 percent in 2023 compared with 2022. Farm businesses across the country are forecast to see higher production expenses, lower cash receipts, and lower Government payments in 2023, resulting in lower expected average net cash farm income. However, this overall decline will vary considerably across the country. USDA’s Economic Research Service uses resource regions to depict the geographic specialization in production of U.S. commodities. Farm businesses in the Northern Crescent region, which leads the nation in dairy production, are forecast to see the largest average percentage decrease, 30 percent, while those in the Mississippi Portal, which leads the nation in rice production, are forecast to see the smallest percent decrease, nine percent. Meanwhile, the Fruitful Rim will see an estimated 24 percent decline in average net cash income.