Drought, inflation won’t stop farm income from hitting record highs, USDA says

High prices for products like eggs and grain are expected to lead to a record windfall for farmers this year, overcoming drought, bird flu and costly inputs. But the profit margin is thinner for small producers and those hit hard by dry conditions.
National farm income will likely reach highs not seen since 1973, according to estimates from the U.S. Department of Agriculture.

That’s despite a challenging season that stacked drought, bird flu and costly fertilizer and fuel against farmers and ranchers.

Or perhaps income is high not in spite but because of the difficult season, said American Farm Bureau Federation economist Bernt Nelson.

“This year really came with a lot of obstacles; we saw a lot of things like inflation and increased farm production expenses,” he said. “As these prices have risen, they’ve really risen because of the obstacles.”