The University of Arkansas Cooperative Extension Service recently released its 2022 crop enterprise budgets that present the return before land and management expenses are accounted. Surface irrigated peanuts, corn, cotton, soybean, rice and sorghum—as summarized below—are the most profitable in that order according to the budgets although sorghum is the only crop budgeted with a negative return. While crop prices budgeted are higher for 2022 than 2021 by an average of 22%, crop inputs budgeted have increased 61% compared to the 2021 budget. Overall, farm income entering into 2022 is projected to be down. Market prices are reasonable from a historical perspective, but input inflation is eroding profitability.
The UA 2022 Crop Enterprise Budgets are designed in Excel, allowing users to adjust prices, yields, machinery compliments and irrigation in order to match personalized farm activities. They’re an effective way to view how changes in field trips, inputs, machinery, prices and yields can shift profitability and are conveniently available for free download on the extension service’s website.