The farm financial landscape is now seeing much-needed improvement as the past few years have provided producers with some challenges, but also many opportunities.
As a part of our annual conference, the FINPACK Team gives a lay of the farm financial landscape providing some thoughts on the coming year. During this year’s FINPACK Lenders Conference, our team delivered the farm financial trends and 2022 outlook presentation Speeding Ahead: Fasten Your Seatbelts.
FINPACK Economists Bob Craven, Dale Nordquist, and Pauline Van Nurden discuss the 2022 financial outlook for farmers, as well as take a look at farm financial performance over time and what continues to drive success.
Positive Outlook for 2022
Our team of economist feels both crop and livestock farms will continue to earn profits in 2022, which will lead to strong repayment. Diving into the corn and soybean budgets, we expect a break-even cost of about $4.75 on corn acres and $10.25 on soybeans. This prediction uses average yields and projected 2022 input costs, but does not include a “labor and management charge” for the farmer. (This would be the family living draw from the farm.) If you are interested in the details behind these numbers, jump to minute 54 in the video presentation.
We readily admit our crystal ball gets fuzzier beyond 2022! You work with producers daily and you know the ongoing and new challenges that are ever-present for producers in the current environment. You can learn more about the financial standing of agricultural producers using the FINBIN data.
Pauline Van Nurden joined the FINPACK Team as an Economist in 2017.
Prior to joining the FINPACK Team, she worked as a lender. This provides her valuable industry experience and knowledge in her work with FINPACK. Pauline holds a Master’s Degree in Agricultural Education and Bachelor’s Degree in Applied Economics, both from the University of Minnesota.
