According to the spring 2023 Missouri Farm Income Outlook report, Missouri is anticipated to experience a decline in net farm income in 2023 following a record-setting year in 2022. The report, released by the Rural and Farm Finance Policy Analysis Center (RaFF) at the University of Missouri, offers valuable insights into the state-level impacts of economic factors, weather conditions, and policy initiatives on the agriculture industry.
One contributing factor to the projected decrease in farm income is the impact of the nationwide drought on livestock receipts, which resulted in reduced cattle inventories and influenced Missouri marketings (the physical sale of live animals), explained RaFF interim director Scott Brown. The report predicts a 14% decline in net farm income across Missouri's agriculture industry in 2023, compared to a projected 19% decrease in U.S. net farm income.
Key findings from the report include a projected decrease of $430 million in crop receipts for 2023, with soybeans accounting for nearly 6 million of the state's 14 million planted acres. Livestock receipts are also expected to decrease by $400 million, although inventories for cattle, hogs, and poultry are projected to rebound from the previous year. Additionally, production expenses are forecasted to increase by $230 million in 2023, despite a slight decline in fertilizer, feed, and fuel costs.
The insights provided by RaFF's state-level analysis serve as crucial information for decision-makers, enabling them to better understand the impact of various factors on farmers' and rural communities' incomes. By considering these insights, policymakers and program developers can engage in informed discussions and shape effective strategies to support the agricultural sector.
The Missouri Farm Income Outlook report, along with detailed data tables, is available on the center's website, providing a comprehensive resource for industry stakeholders seeking a deeper understanding of the state's agricultural finances.
About RaFF: The MU Farm and Rural Finance Policy Analysis Center (RaFF) is a research policy center funded by Congress. It conducts objective analysis and utilizes a network of state and regional experts and state farm income models to inform decision-makers on farm and rural financial issues. For more information, visit ruralandfarmfinance.com.
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Categories: Missouri, Business