Nebraska Net Farm Income Looks to Remain Strong in 2022 According to New Report
Net farm income in Nebraska is projected to remain nearly unchanged from 2021 to 2022, at around $8 billion according to a new report produced in collaboration between the University of Nebraska-Lincoln’s Center for Agricultural Profitability and the University of Missouri’s Rural and Farm Finance Policy Analysis Center (RaFF).
The fall 2022 Nebraska Farm Income Outlook report projects a growth of $4.7 billion in crop and livestock receipts, which were countered by a $3.2 billion increase in production expenses and a $900 million decline in government payments. The expected flat net farm income in Nebraska differs from the national outlook, which projects a 6% increase in total U.S. net farm income, largely due to the difference between state and national livestock receipts. While Nebraska livestock receipts are projected higher for 2022, they are concentrated in meat animals, particularly beef cattle, while greater gains nationwide include larger projected increases in dairy and poultry. The report includes the impact of weather, geopolitical conflict and other factors on net farm income.
“Farm income projections for 2022 that are on par with the 2021 record levels provide an optimistic picture of the sustained performance and financial strength of the farm sector,” said Brad Lubben, Extension Policy Specialist and the primary Nebraska collaborator on the research.
However, Lubben mentioned that there are still unknown variables.
“The current projections for 2022 could prove to be overly optimistic as harvest yields are assessed and the full impacts of drought are better estimated,” he said.
To learn more about the key findings of the report, read this article on the Center for Agricultural Profitability.