(West Lafayette, IN) - Farmers, if possible, should think twice about making any major equipment purchases to prepare for a projected major drop in net income in 2023.  That was one of the main messages from agriculture economists at Purdue University during their monthly corn and soybean outlook webinar on November 11.

 

“Think long and hard about whether you do need to buy machinery,” said Michael Langemeier, Associate Director of the Center for Commercial Agriculture at the West Lafayette campus.  The reason is inflation along higher interest rates at a time when corn and soybean prices are expected to drop but remain fairly strong next year.

 

Farmers were advised to hang on as much as possible to the money they saved from the previous two years when net income was high to make sure they have enough money to cover their bills in 2023.  Right now, net farm income in 2023 is projected at $50 per acre compared to $120 per acre this year and $350 per acre in 2021.

 

USDA is expected to come out with a revised net farm income forecast for 2023 in February.  Langemeier said net farm income in 2023 and maybe 2024 could be the worst since 2019.  Slumping prices from 2014 to 2019 left farmers across the country struggling to stay above their input costs. 

 

“Just be really cautious,” he said.