By Blake Jackson
Kentucky's agricultural cash receipts reached a record high of $8.3 billion in 2022, up from $6.9 billion in 2021. The value of livestock cash receipts totaled $3.47 billion, up 26 percent from the previous year. Crop cash receipts in 2022 were $3.84 billion, up 14 percent from 2021.
Corn led cash receipts in Kentucky for the second straight year, with a 2022 value of $1.45 billion, up 14 percent from the previous year. Broilers moved up to the second position with cash receipts totaling $1.43 billion, up 39 percent from 2021. Soybeans ranked third with a total of $1.39 billion, up from $1.15 billion the previous year.
While agricultural cash receipts reached a record high in 2022, net farm income is forecast to decline in 2023. The USDA's Economic Research Service forecasts net farm income to decrease by $41.7 billion (22.8 percent) in 2023 relative to 2022.
The decline in net farm income is expected to be driven by lower commodity prices and higher production costs. Total cash receipts from the sale of agricultural commodities are forecast to decrease by $23.0 billion (4.3 percent) from 2022 to 2023.
Even with the decline in net farm income forecast for 2023, net farm income would still be 22.6 percent above its 20-year average (2003–22).
Farmers and ranchers will need to adapt to lower net incomes in 2023. They may need to make adjustments to production methods and financial strategies. A solid Farm Bill can help mitigate some of the belt-tightening that farmers and ranchers will have to do.
Photo Credit: istock-lprising
Categories: Kentucky, General