Kentucky’s agriculture economy appears headed for a record-breaking year, even during uncertainties associated with COVID-19. University of Kentucky ag economists predict the Commonwealth will end the year with receipts exceeding $6.7 billion. If so, it will break the 6.5 billion recorded in 2014. Net farm income is projected at $2.5 billion, the highest in eight years.
UK Ag Economist Will Snell said grain growers particularly could notice a bump in their income levels. But Snell noted that farmers realize next year may not be as strong. “We all know in agriculture these high prices just encourage more production, whether it be in Kentucky, across the U.S., or worldwide. I think most of our producers realize that this price scenario is probably not going to continue long term, that we will see adjustments in prices,” said Snell.
But in 2021, Kentucky saw strong prices in many ag sectors including grain, poultry, and equine. The report said exports were strong along with good crop yields and a high global demand for meats. Snell noted there are concerns about ag input costs in 2022. He says the cost of fertilizer has, “skyrocketed.” And the veteran ag economist admitted coronavirus could greatly impact the state’s farming industry.
