News

Producers make less, pay more in January

U.S. farm income declined slightly in January as costs rose, one sign of the inflation currently hitting the ag economy.

The USDA says the index of prices received was down 0.9% as decreases for cattle, hay, lettuce, and lemons canceled out increases in milk, cotton, broilers, and market eggs.

The dairy index for January 2022 was up 11% from December and 38% from January 2021, with the all milk price at $24.20, a gain of $2.40 on the month and $6.70 on the year.

The index of prices paid gained 2.1% with higher costs for feeder pigs, complete feeds, nitrogen, and other services against lower costs for hay and forages.

Year-to-year, the index of prices received was up 24% from January 2021 and the index of prices paid was up 12%, both reflecting that inflation and the status of the broader ag economy during the first year of the pandemic.