Net farm income for U.S. farmers is forecast at $160.5 billion in 2022, a $19.5 billion increase over 2021. The December Farm Sector Income and Finances report shows net cash farm income forecast at $187.9 billion in 2022, $29 billion higher than in 2021.
Cash receipts from agricultural commodity sales will increase by $105 billion from 2021 to $541.5 billion this year. However, farm sector debt will increase by $27.8 billion in 2022 to almost $502 billion. Farm sector debt-to-asset levels will improve from 13.5 percent last year to 13 percent in 2022. Working capital, the amount of available cash to fund operating expenses after paying off debt due within 12 months, will rise 4.7 percent in nominal dollars but drop 1.4 percent when adjusted for inflation.
Dairy farms will likely see the biggest jump in average net cash farm income, while specialty crops, cotton, and hogs the biggest decline.