American farmers are entering 2023 in a strong financial position, but the pressure is mounting, AgAmerica said in its February 6 analytical report, according to news portal Agriculture.
Farmers Outlook 2023 is a report on the financial position of farmers beyond 2022 and what to expect in 2023. The document looked at various indicators, including commodity prices, production costs, and domestic and international supply and demand. .
It found that US farm net income grew nearly 14% in 2022, but production costs rose nearly 19%. AgAmerica believes that several factors will threaten farmers in 2023, including the looming threat of a recession, rising interest rates, and a shortage of diesel fuel.
“The good news is that the farm’s balance sheet is expected to remain strong this year despite the expected slowdown in stock growth.says the report. — The bad news is that the downward trend in liquidity from 2022 will continue through 2023.”.
AgAmerica predicts that prices for some commodities will decline by the end of 2023, including corn, soybeans, wheat, hogs, and poultry. However, cattle prices are expected to rise. “The number of beef cows is expected to decrease by approximately 5% in 2023, while the number of cattle and calves is expected to decrease by 3%”says the report. At the same time, the company’s experts say: “The prices of fattening cattle will increase by 5%”.
“Increased market risk associated with declining agricultural commodity prices and rising farm input costs could create increased financial risk for farmers and ranchers in 2023.”says the AgAmerica report.
The report also contains “professional advice.” In particular, farmers are advised not to wait too long to sell their grain and to think carefully about their investment decisions.
Source: Rossa Primavera
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