The Russia-Ukraine war, surging inflation, and an energy crisis joined the COVID-19 pandemic this year as major events defining the operating environment for U.S. companies. We can expect to feel the aftershocks in 2023. After posting record high net farm income in 2021 and 2022, margin pressure is coming to agriculture in the coming year. Steeply higher interest rates, escalating production costs, an elevated dollar, and weakening demand have become formidable foes. In addition, a divided government reflecting unique midterm election results will muddy the path of the next farm bill.
