Kansas Farmer Logo

K-State ag economists share preliminary average net farm income data for 2021 and predictions for 2022.

Jennifer M. Latzke, Editor

January 25, 2022

2 Min Read
Grain bins
ghornephoto /Getty images

Many grain farms in Kansas will see record net farm income for 2021, according to Kansas State University agricultural economists. However, considering rising input costs and the unlikelihood of government payments, 2022 is likely to be a different story.

Using data collected from the Kansas Farm Management Association, K-State agricultural economists Gregg Ibendahl and Dan O’Brien released their preliminary calculations of the 2021 Kansas net farm income and offered insights into what’s in store for 2022.

Record-setting

According to Ibendahl and O’Brien, the state average net farm income of $261,000 for 2021 should be the highest it’s been since the KFMA program started keeping computerized records. That’s a 39% increase from 2020.

But they forecast average net farm income to fall by 65% in 2022 to $90,000, and predict a quarter of Kansas farms in 2022 will have a negative net farm income.

“However, that last estimate is still very uncertain, as higher future prices have to translate to higher farm prices, and rainfall amounts have to be around normal for yields to hold at average values,” according to their report.

Factors to monitor

Five factors that Kansas farmers and their lenders need to keep in mind in 2022: 

1. Fertilizer. If farmers bought their fertilizer before the price increase, they may have a better chance at profit in 2022. Fertilizer prices are expected to be 50% higher in 2022.

2. Seed. Seed costs in 2022 could be 20% higher than 2021.

3. Pesticide. Pesticide expenses are predicted to increase 8% in 2022.

4. Higher inflation. In 2022, farmers should plan for input costs to rise 5% to 10%, Ibendahl says. Diesel and fuel costs in 2021 are expected to be 30% higher, and an additional 30% higher on top of that in 2022.

5. Crop acres. Considering fertilizer availability and prices, soybean acres are expected to increase 5% in 2022, while corn and grain sorghum acres are projected to be lower.

To see the full preliminary report, visit Preliminary Estimate of 2021 Kansas Net Farm Income and a Projection for 2022.

Kansas State University Research and Extension contributed to this article.

About the Author(s)

Jennifer M. Latzke

Editor, Kansas Farmer

Through all her travels, Jennifer M. Latzke knows that there is no place like Kansas.

Jennifer grew up on her family’s multigenerational registered Angus seedstock ranch and diversified farm just north of Woodbine, Kan., about 30 minutes south of Junction City on the edge of the Kansas Flint Hills. Rock Springs Ranch State 4-H Center was in her family’s backyard.

While at Kansas State University, Jennifer was a member of the Sigma Kappa Sorority and a national officer for the Agricultural Communicators of Tomorrow. She graduated in May 2000 with a bachelor’s degree in agricultural communications and a minor in animal science. In August 2000 Jennifer started her 20-year agricultural writing career in Dodge City, Kan., on the far southwest corner of the state.

She’s traveled across the U.S. writing on wheat, sorghum, corn, cotton, dairy and beef stories as well as breaking news and policy at the local, state and national levels. Latzke has traveled across Mexico and South America with the U.S. Wheat Associates and toured Vietnam as a member of KARL Class X. She’s traveled to Argentina as one of 10 IFAJ-Alltech Young Leaders in Agricultural Journalism. And she was part of a delegation of AAEA: The Ag Communicators Network members invited to Cuba.

Jennifer’s an award-winning writer, columnist, and podcaster, recognized by the Kansas Professional Communicators, Kansas Press Association, the National Federation of Presswomen, Livestock Publications Council, and AAEA. In 2019, Jennifer reached the pinnacle of achievements, earning the title of “Writer of Merit” from AAEA.

Trips and accolades are lovely, but Jennifer says she is happiest on the road talking to farmers and ranchers and gathering stories and photos to share with readers.

“It’s an honor and a great responsibility to be able to tell someone’s story and bring them recognition for their work on the land,” Jennifer says. “But my role is also evolving to help our more urban neighbors understand the issues our Kansas farmers face in bringing the food and fiber to their store shelves.”

She spends her time gardening, crafting, watching K-State football, and cheering on her nephews and niece in their 4-H projects. She can be found on Twitter at @Latzke.

Subscribe to receive top agriculture news
Be informed daily with these free e-newsletters

You May Also Like