Even after a year of record high inflation, economic forecasts show 2022 was a good year to be farming.
The U.S. Department of Agriculture’s Economic Research Service estimated that national net farm income will reach $160.5 billion for the year. That’s 13.8 percent higher than in 2021 and roughly 50 percent higher than the 20-year average, according to ag economist Paul Mitchell.
Mitchell, who leads the Renk Agribusiness Institute at the University of Wisconsin-Madison, said part of the prosperity comes from COVID-19 aid from the federal government, which helped kick-start demand after an initial downturn at the start of the pandemic.
“We’ve had unprecedented levels of commodity support for agriculture for a couple years and then really good prices,” he said.