Kansas farms demonstrated resilience in the face of adversity, as indicated by a report from the Kansas Farm Management Association (KFMA). Despite significant challenges, such as rising input costs, widespread drought, and low yields, net income remained strong in 2022.
According to KFMA Executive Director Mark Dikeman, the net farm income for Kansas came in at $164,914, slightly below the five-year average of $173,660. Nevertheless, it significantly surpassed the average net farm income of $99,497 recorded during the 2016-2020 period.
The report analyzed data from 834 Kansas farms across six regions, providing insights into their financial performance. The regional breakdown of net farm income for 2022 is as follows: Northwest: $209,822
Southwest: $239,155
Northcentral: $157,352
Southcentral: $150,570
Northeast: $163,266
Southeast: $182,959
15.3% ($25,236) of net agricultural revenue came from government subsidies, while 56.3% ($92,781) came from net crop insurance (payments received less premiums paid). For qualified farmers, the Emergency Relief Programme of the USDA contributed an average of $17,450 towards losses brought on by recognised natural disasters.
Livestock producers in Kansas were particularly affected by high grain prices and reduced availability of forages due to drought. Feed costs increased by 13.2% compared to the previous year, according to KFMA's data.
Dikeman emphasized the importance of maintaining accurate farm records, which enable farmers to identify production costs and make informed marketing decisions. Investing time into this process is crucial for successfully managing the volatility of the current production and economic environment.
The report from KFMA showcases the resilience of Kansas farms, highlighting their ability to navigate challenges and achieve strong net income despite adverse conditions.
Photo Credit: GettyImages-lishanskyphotography
Categories: Kansas, Business, Government & Policy