Jan 11, 2023

Purdue reports on grower issues

Purdue ag economics experts are looking ahead to what the agricultural sector can expect in 2023.

After 2022, a year of economic shocks that included supply chain disruptions, global conflicts, tight margins and historic inflation, Purdue University Department of Agricultural Economics staffers weighed into what they expect the agricultural sector can expect to experience in the new year.

The findings were recently published in the Purdue Agricultural Economics Report’s annual outlook issue.

Inside the issue, Roman Keeney, a Purdue associate professor and report co-editor, discusses implications of expected changes as well as work on the 2023 Farm Bill. He also notes the short timeline and a wave of new congressional representatives could make replacing the 2018 Farm Bill in 2023 a significant challenge.

The report provides an outlook for the following agricultural topics:

• The U.S. Economy in 2023.
• Trade and trade policy.
• Factors that shape the 2023 Farm Bill.
• Consumer food prices.
• Dairy consumption and production.
• Purdue Crop Cost and Return Guide.
• Agricultural credit.
• Farmland values and cash rents.

“Signs are pointing to another uncertain and volatile year in agriculture,” Keeney said in a news release. “In 2023, our experts are assessing the possibility of a recession, impacts from the ongoing war between Russia and Ukraine, as well as expectations for input costs and food prices.

“Additionally, the 2018 Farm Bill is set to expire in September, which makes 2023 an important year for farm policy. Following multiple years of emergency support and agriculture benefitting from COVID relief packages, government direct support to agriculture is set to fall dramatically.”

The Purdue Agricultural Economics Report is a quarterly publication from the Department of Agricultural Economics. Articles in the annual outlook issue are intended to provide a road map for understanding challenges facing the agricultural economy, according to the release.